Retail optimism level at its highest since 2002, says CBI

Retailers are at their most optimistic since 2002, with 51% of respondents reporting an increase in sales volumes, according to new research by the Confederation of British Industry (CBI). 

According to CBI’s latest quarterly Distributive Trades Survey, retail sales grew strongly in the year to August with the pace of growth expected to accelerate again in September.

The research, which surveyed 142 firms, also showed that sales were broadly average for the time of the year with retailers more optimistic about their business situation for the next quarter than at any time since May 2002.

Internet sales also picked up in August with online sales expected to strengthen even further in September.

Over 51% of respondents reported that sales volumes were up on a year ago, compared with 14% who said they were down, giving a balance of 37%.

Retailers are expecting their overall business situation to improve over the next three months, with just 7% expecting a fall in sales in September.

Compared with a year ago, 28% of retailers placed more orders with suppliers than they did a year ago with just 19% making fewer orders.

The volume of internet sales also grew strongly (47%) and is expected to grow at an even faster pace in September (62%).

Katja Hall, CBI deputy director-general, said: “The high streets have been bustling with shoppers this summer and it is good to see firms so optimistic about their business prospects for the next three months – higher than any time since 2002.

“Retailers looking forward to stronger growth in September are keeping their shelves well-stocked in anticipation.”