UK retail sales slowed in June, CBI says

Retail sales volumes slowed more than expected in June, but a slight recovery was forecast by most executives in the industry.

The Confederation of British Industry’s total sales index fell to a reading of 29% in June from 51% in the month before.

The consensus was for a reading of 35%.

“Summer is a time of optimism for retailers and this year is no different. Even though growth slowed slightly this month, retailers are not letting that subdue their hopes for the season.

“Low inflation – expected to stay below 1% throughout this year – has given customers more discretionary income. The power of the pound in their pocket is going further and shoppers are spending more on treats, like flowers and jewellery, as well as on activities with their families,” said Barry Williams, CBI Distributive Trades Survey Chairman and Asda’s Chief Customer Officer.

Subsectors which saw growth in sales volumes included furniture & carpets which rose 63%, clothing 57% and chemists 47%.

Grocer sales were flat at 0%, while footwear and leather fell 36%.

The volume of internet sales slowed slightly at a reading of 32%, and fell short of expectations. However retailers anticipate online sales to pick up next month to a reading of 49%.