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Gloomy Predictions Reassessed Following Strong February for Retail
Listed under: News
Published: Friday, February 26, 2010
Retailers experienced their strongest sales growth in two years during the first half of February this year, with experts predicting further increases in March, according to a recent report from business support group, the CBI.
The findings reveal that although price inflation continued to accelerate sharply in February, the rise of unemployment slowed significantly, seeing investments in the retail sector stabilise for the first time in two years.
Sales volumes were also up on 2009, with 46% of retailers saying they had seen their profits rise substantially year-on-year. However, the report suggests many business owners remain apprehensive about the month ahead, with only 16% believing the growth in profits can be sustained.
Commenting on the positive report, Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, says, “Sales have been stronger this month than many retailers predicted they would be, but that’s not surprising as January was impacted by VAT changes and forward buys in December.”
He adds, “While many retailers don’t think February’s growth spurt will be matched in March, the sector can take some reassurance in the fact that job losses are easing off and capital expenditure plans are stabilising. However, although retailers will see some growth ahead, the road to recovery through 2010 is likely to be fragile, as worries about the economy and upcoming pay freezes result in shoppers remaining cautious.”
How was business for you in February? Email your thoughts to .(JavaScript must be enabled to view this email address)
The findings reveal that although price inflation continued to accelerate sharply in February, the rise of unemployment slowed significantly, seeing investments in the retail sector stabilise for the first time in two years.
Sales volumes were also up on 2009, with 46% of retailers saying they had seen their profits rise substantially year-on-year. However, the report suggests many business owners remain apprehensive about the month ahead, with only 16% believing the growth in profits can be sustained.
Commenting on the positive report, Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, says, “Sales have been stronger this month than many retailers predicted they would be, but that’s not surprising as January was impacted by VAT changes and forward buys in December.”
He adds, “While many retailers don’t think February’s growth spurt will be matched in March, the sector can take some reassurance in the fact that job losses are easing off and capital expenditure plans are stabilising. However, although retailers will see some growth ahead, the road to recovery through 2010 is likely to be fragile, as worries about the economy and upcoming pay freezes result in shoppers remaining cautious.”
How was business for you in February? Email your thoughts to .(JavaScript must be enabled to view this email address)
