UK retailers expecting Christmas boost

| October 28, 2010 | 0 Comments

According to the latest CBI distributive trades survey, retailers are optimistic - particularly about the run-up to Christmas.

This is deemed positive after many reports have suggested consumers will rein in their spending after the Government’s massive spending cuts.

However, shoppers are expected to buy big-ticket items - ahead of the VAT rise which will come into effect on 1 January 2011.

The CBI’s survey did reveal, however, that although retail sales rose for the fourth consecutive month, the pace was much slower than previous months.

The CBI also expects spending growth to be slow in 2011

The survey found that 58% of retailers said sales grew in October, with 22% reporting a fall, giving a balance of +36% - this was lower than forecasts of 47% and less than September’s balance of +49%.

Lai Wah Co, the CBI’s head of economic analysis, comments: “High Street sales in aggregate have performed well again this month, but sales of durable household goods have slowed noticeably, in line with more subdued housing market activity of late.”

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