The March round up of retail reports was kicked off yesterday with the CBI distributive trades survey.
And yes, it was bad news- again, but at least there is some hope.
The CBI index- that’s the balance between retailers who said trade was up with those who said it was down was -16, a slight improvement on February’s reading of -18.
Furniture and carpet retailers were celebrating, however, with the index for that sector scoring plus seven.
But the reason why there is some promise lurking is as follows. Firstly the period the CBI surveyed didn’t include Easter- and secondly, the pick up in weather, which normally prompts a move to the High Street with sales of Spring wear selling, also started after the period.
Then, this morning, Boots released its latest trading update, and it had good news. In the recent three month period, same store sales were up 2.2%. It’s the first increase of this type in five quarters.
But then, just as there are signs of an improvement, albeit slight, the Bank of England comes along and spoils it all. The UK’s central bank released its February report on mortgage approvals, and the bad news: they were down in the month, the first fall since the end of 2004.
The High Street remained sluggish, even when the housing market showed a modest pick up. If the housing market is about to go through a quiet period, as recent reports are suggesting, then hopes of a High Street recovery must be fading
Comments
Trackbacks