CBI: Consumers stock up on food and TVs for World Cup
A survey by the Confederation of British Industry (CBI) today revealed a mixed June for retail sales with footwear stores hit but food and electrical retailers experienced good growth.
According to the CBI’s monthly distributive trades survey, over one third of retailers reported a rise in the volume of sales during the first two weeks of June, while 39% reported a fall.
As a result, the sales balance rose to -5 from May’s level of -18 but exceeded the -15 expected.
According to the CBI, footwear retailers in June suffered but grocers and durable household goods experienced robust growth.
CBI chief economic adviser Ian McCafferty said: “This may reflect consumers gearing up for the World Cup by stocking up on food, drink and new televisions.”
Mr McCafferty said retailers are confident that sales will recover next month.
He concludes: “As the survey predates the emergency budget, news that the feared rise in VAT will not take effect until next January may well also encourage some advance spending over the second half of the year,” he added.