High Street Sales Fall In August

Friday 14th of August 2009 04:49:44 AM

High Street Sales Fall In August

Though High Street retail sales fell again in August, the sellers are expressing more optimism about future sales. That is good for the economy because it means consumers are expressing optimism to the retailers. The CBI business organization tracks retail sales and inventories and companies are currently letting stocks fall to new low levels for cost cutting purposes. Some retailers are operating at barely adequate levels. Employee reductions are still continuing also. But despite the ongoing difficult economic times, it appears that conditions are going to begin improving soon.

The CBI Distributive Trades Survey reported that up to 34 percent of the retailers surveyed reported August sales increases. Though this sounds high the number actually reflects a slowing in sales declines.

Of course, there is still plenty of bad news to report. Retailers reduced orders placed with their suppliers in August more than they did each of the last 2 months. This reduction is expected to continue into September. Both retailers and their customers consider stock levels to be as low as they should go with consumer demands often not being met right now. Many shoppers are going online to buy merchandise like uniforms and cheap t-shirts.

The CBI also surveyed employment conditions and 41 percent of the businesses had cut staff. But retail prices are beginning to rise again which will be good for sales. Andy Clarke is the Chairman of the CBI Distributive Trades Panel and the Chief Operating Officer of Asda. He said, "These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September. Stock levels have been pared right back as retailers have adapted to weaker consumer demand. However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy."