Retailers disappointed by weak New Year sales – CBI (From Watford Observer)

Retailers disappointed by weak New Year sales – CBI

9:20am Thursday 4th February 2010 in

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The UK high street reported a slight fall in year-on-year sales in early January, disappointing retailers' predictions and ending a three-month run of sales growth, the CBI has reported.

Responding to the CBI's latest Distributive Trades Survey, 28 per cent of retailers said the volume of sales in the year to early January had risen, while 36 per cent said it had dropped.

The resulting balance of minus eight per cent was weaker than predictions made last month of sales being broadly flat on a year ago (minus two per cent).

The weak sales during the traditional “New Year sales” period are likely to have been influenced by the UK's extreme cold snap, which coincided with the survey span of January 4 to 15. The rise in VAT may also have deterred consumers from big-ticket items.

Looking ahead to February, retailers expect sales will be largely unchanged on their levels of a year ago.