06 December 2007, 16:30 PM
  • Although high street sales are still on the up, retailers will need a late Christmas rush if expectations of strong performance are to materialise, according to the Confederation of British Industry (CBI).

Results of the confederation’s latest distributive trades survey revealed that most retailers only expect a modest growth in December and sales are seen as slightly below average for this time of year. However, despite keen competition and focus on delivering value at Christmas, almost half the respondents said average selling prices are up, with 46% of them thinking they were higher than 12 months before.

Jon Longworth, chairman of the CBI’s distributive trades panel, says, “Higher energy and food prices have already started to affect manufacturers and wholesalers and now we are seeing the impact on retailers who have been putting up prices over the past quarter.

“Despite the intense competition in the run-up to Christmas, when we anticipate that retailers who focus on value will do better than the rest, the survey shows that prices are expected to rise again over the next three months,” he concludes.