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Retail sales pick up but remain weak, CBI says
Retail sales picked up in May after two months of declines but remained weak, a CBI survey showed.
The monthly survey found 29% of retailers reporting higher sales volumes than a year ago and 18% saying sales were falling. The +11% balance was lower than the average for the time of year, the CBI said.
Sales rose at grocers, hardware and DIY stores and at internet and mail order businesses. Clothing, footwear, furniture and specialist food and drink were some of the segments where sales fell.
Retail sales are expected to pick up but to stay below the norm for the time of year and the CBI said the survey painted a gloomy picture of the industry. Retailers expect their business situation to get slightly worse in the next quarter, prices are rising while household incomes are constrained and investment intentions turned negative for the first time in a year.
Anna Leach, the CBI's head of economic intelligence, said: "It's good to see some modest growth returning to the high street after two months of falling sales. But there's no let-up in inflation for shoppers as prices are still rising strongly.
"Although real wage growth is gradually rising, the pace is gradual, meaning that the squeeze on households from higher inflation and subdued wage growth will persist for some time yet."
Britain's retailers are struggling as prices rise faster than wages, squeezing household spending power, while shoppers move online. Uncertainty over Brexit and the wider economy is also weighing on consumer sentiment.
The sector was hit by bad winter weather in March that caused economic activity to slow sharply. The CBI survey suggests there was no major upturn in shopping activity as spring weather arrived.