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Shoe sales defy retail gloom

Source PA News

Updated on 28 July 2009

The DIY, furniture and carpet sectors are suffering in the recession as the CBI said retail sales fell for the third month in a row.

The business lobby group revealed that 47% of retailers said sales volumes were down in the year to July, against 32% reporting an increase.

The resulting balance of minus 15% was slightly better than expected, but firms indicated they were braced for a slightly heavier fall of minus 23% in August.

Grocery stores continued to see strong growth on a year ago, while the only other sector to improve was footwear and leather, with a balance of plus 64%.

Falling sales were reported by retailers of hardware, china and DIY, and furniture and carpets, but the decline in durable household goods was slower than the heavy falls seen in the past year.

The CBI's distributive trades survey is gloomier than figures from the Office for National Statistics, which said volumes rose 1.2% between May and June.

Andy Clarke, chairman of the CBI distributive trades panel, said: "Many retailers are having a difficult summer and no pick-up is expected in August.

"But the overall sales falls are not as heavy as we saw at the start of the year, and some retail sectors are reporting growth. The recent sharp rise in unemployment will worry many consumers, and is likely to constrain sales growth in the months ahead."

The survey was conducted between June 24 and July 15, with 145 firms taking part.

Vicky Redwood, UK economist at Capital Economics, said: "Overall, retail sales are still holding up pretty well. However, we remain nervous about what might happen once the support from the good weather fades and the drag on household incomes from rising unemployment and slowing pay growth intensifies."

These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.

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