Good news for retailers as sales buoyant

Retail sales are “bounding ahead”, according to a new report.

Figures from the CBI suggest that 60 per cent of firms reported an increase in sales volumes during the year to May when compared with the same period last year.

Meanwhile just nine per cent reported that sales had fallen. Some 63 per cent of respondents said they expected sales to grow again in June, compared with four per cent who predicted them to fall.

Rain Newton-Smith, director of economics at the CBI, said: “Low inflation, which we expect to remain below 1 per cent for the rest of the year, has given household incomes a much-needed boost and greater spending power. Overall, the outlook is bright for firms on the High Street.”

But Mr Newton-Smith sounded a note of caution for food retailers, which he said were struggling because of a combination of price wars and new entrants.

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