The UK retail industry sales volumes surged in the first half of April 2009 due to falling of Easter in April this year and pleasant weather.
The Confederation of British Industry (CBI) recently conducted "Distributive Trades Survey" which revealed that 44% of retailers acknowledged increment in year-on-year sales volumes during the first fifteen days of April 2009, as reported by guardian.
Although the retailers benefited from the sunny weather and the Easter bank holiday, the upsurge in sales was unexpected, as a balance of 41% of retailers had forecasted that sales volumes would tumble during the first half of April, said the CBI. After March 2008, this was for the first time when +3pc balance positive reading was recorded and the highest since January 2008.
Retailers in the UK posted the first rise in sales volumes after more than a year's period. This upward movement indicates to the improving economic conditions and increase in trading on the high street.
In April, food retailers' sales volumes rose significantly. Footwear and clothing retailers recorded 58% net balance and landed into the positive territory. However, the sales of all other sectors declined.
Moreover, some industry experts highlighted that the figures were affected by Easter as it had fallen in April this year while it was in March last year. The CBI further said that retailers were not optimistic that the uptrend would carry on in May, which has been forecasted to see downtrend in sales.
Andy Clarke, Chairman of the CBI Distributive Trades Panel, and Chief Operating Officer of Asda, noted, "The good turnout by shoppers over this year's later Easter may well have influenced the April retail figures, and while they mark a respite, they should not be taken as an indication of a high street revival," as reported by telegraph.
According to a Research Analyst at RNCOS, "While the retail sales in the UK surged during the first half of April, it would be too early to say that the market entered the green shoots territory. Rising unemployment and slow growth in average earning have made consumers to be cautious. Depreciation in Pound will also force retailers to increase prices."
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