27 March 2008, 20:40 PM
  • Retail activity remained subdued in March with high street stores reporting flat year-on-year sales, says the latest CBI Distributive Trades Survey.

Opinions were split as to whether sales were up for the first half of March, with 36% saying yes against 35% thinking the opposite. Although this result isn’t perfect, it’s better than in February when those believing sales were down outnumbered the positivist.

Ian McCafferty, CBI chief economic adviser, says, “This month’s survey has borne out retailers’ expectations that the strong growth enjoyed in 2007 has come to an end. The picture now is of subdued activity as consumers tighten their belts amid the general cooling of activity we are seeing across the whole economy.

But, all is not bleak, adds Mr McCafferty. “One area which saw good growth was the food sector - perhaps because people are preferring to treat themselves at home instead of eating out.”

The survey shows that 29% of retailers describe sales as poor compared to 15% saying they were good. As a result, most of them have ordered less new stock from suppliers than a year ago. Looking ahead to next month, retailers across the sector believe activity will remain subdued with volumes expected to be broadly the same as last April. Orders to suppliers will also remain lower than the same time last year.