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Specialist drinks retailers not enjoying same level of growth as rest of high street says CBI

Published:  28 February, 2014

Specialist drink and food retailers are not performing as strongly as the rest of the retail industry which has seen sales grow at their fastest pace since June 2012, according to the latest figures from the CBI.

 

Specialist drink and food retailers are not performing as strongly as the rest of the retail industry which has seen sales grow at their fastest pace since June 2012, according to the latest figures from the CBI.

The results of its quarterly Distributive Trades Survey which takes in the results of over 120 retail businesses across a number of sectors was above "expectations" with sales having grown for the ninth consecutive month. 

But sales volumes for specialist drink and food retailers had fallen for the second consecutive month but "were broadly in line for the time of year" and "firms anticipate they will strengthen again in the next month".

Overall the study showed retailers see their businesses "improving over the next quarter". But the CBI warned "growth in retail sales in the year to March is expected to moderate from this month's strong pace, but should remain robust".

Barry Williams, chair of CBI Distributive Trades Survey panel, and chief merchandising offer for food at Asda, said: "The high streets have kicked on once again this month, with growth the strongest since the summer of 2012.

"There is growth across many sectors, including grocers and clothing outlets, while investment intentions are at their highest for more than three years.  Although we are by no means seeing a universally confident shopper, the positive indicators have perhaps given some people the urge to spend.

"Overall sales have been remarkably resilient in the face of disruption from the exceptional weather across the UK, which has badly affected many families and businesses."

Key findings:

  • 45% of respondents reported that sales volumes were up on a year ago, while 8% said they were down, giving a balance of +37%, the strongest since June 2012 (+42%) and easily beating expectations (+15%).
  • retailers expect sales volumes to grow at a robust pace next month (+28%), with 43% expecting them to rise and 15% to fall.
  • Grocers' sales grew at their strongest pace (+67%) since June 2012 (+85%).
  • The volume of stocks in relation to expected demand was +4%, the lowest level since September 2012 (+4%).
  • 9% of retailers said that sales volumes were above average for the time of year, while 12% said they were below average, giving a balance of -3% - broadly in line with expectations (-4%).
  • 31% placed more orders with suppliers than they did a year ago and 15% placed fewer, with the resulting balance of +16%, matching expectations.
  • employment in the retail sector fell slightly for the first time in a year (-4%).
  • retailers expect their overall business situation to improve over the next three months (+18%).
  • investment intentions for the year ahead (+17%) were their strongest since November 2010 (+28%).

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