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Retail sales in the run up to Christmas have accelerated at their fastest pace for almost 26 years, according to CBI’s latest monthly Distributive Trades Survey.
The survey of 122 firms covers the fortnight ending December 11 and includes the sales-boosting effects of Black Friday.
Grocers saw the strongest year-on-year sales, closely followed by the ‘Other Normal Goods’ sector which includes jewellery and watches, with 79% of respondents claiming that sales were up on last year.
Retailers expect overall sales volumes to grow again next month, albeit at a slightly slower pace (35%), with 49% expecting them to rise and 13% to fall.
Having slowed sharply in the year to November, the volume of orders placed upon suppliers bounced back. At 24%, it was slightly above expectations (20%) but retailers predict growth will slow in the year to January (15%).
Barry Williams, CBI Distributive Trades Survey chairman and Asda chief merchandising officer for food, said: “The strongest sales growth for a quarter of a century is a big boost for retailers as they head towards the climax of the crucial pre-Christmas trading period.
“Black Friday price-cuts, embraced more widely by more UK retailers than ever, and discounting played an important part in helping sales, encouraging more customers into stores and online to buy more widely.
“But, shoppers may have caught the Christmas bug early and brought some of their spending forward. This has been a tough year for many retailers and parts of the sector are still struggling. Increasing disposable income from real wages growth, and falling fuel prices are giving retailers reasons for optimism but we’ll need to see in the New Year whether the upbeat mood takes hold.”
