26 June 2008, 20:20 PM
  • Last week's announcement by the National Office of Statistics that sales rose by 3.5% in May apparently did little to bring confidence to the high street.

In fact, according to the latest figures released by the CBI, 39% of retailers believe sales were lower during the first half of June than they were a year ago. Only 30% of respondents think sales volumes were actually on the up.

Andy Clarke, chairman of the CBI’s Distributive Trades Panel and retail director of Asda, says, “High fuel prices and concerns about the economy have blunted consumer appetite and those retailers linked to the housing market are continuing to endure difficult conditions.”

However, all is not bleak and certain sectors performed better than others. Mr Clarke adds, “Grocers have had another strong month and we are seeing people spend more in supermarkets as they focus on the essentials and also upgrade to higher value food ranges instead of having a night out.”