02 May 2007, 18:26 PM
  • High street shops enjoyed strong annual growth in sales volumes, with the balance of retailers reporting a year-on-year increase the highest in almost three years, the latest CBI Distributive Trades Survey has revealed.

The monthly snapshot of the retail sector over the first half of April also showed the strength of demand was greater than expected, such that stock levels were run down and are now considered barely adequate to meet future demand. As a result, the level of orders to suppliers is expected to remain strong into May.

When asked how sales compared with a year ago, 64% per cent of respondents said volumes had increased, while 20% said they had fallen, giving an unexpectedly strong balance of +44% - the highest since May 2004. Retailers are upbeat about the next month, with a net +36% of respondents predicting that volumes will continue to grow, recording the strongest expectations since July 2004.

John Longworth, executive director of Asda and chairman of the CBI’s Distributive Trades Survey Panel, said, “Sales grew strongly over the first two weeks of April, surpassing expectations and ensuring another very pleasing month for the high street. Retailers were helped by buoyant Easter trading and unusually warm weather.

“Looking ahead, retailers expect demand to remain strong as we head into the summer and the recent trend of healthy sales growth looks set to continue.”