Fashion outperforms September retail

London - Retail sales fell in the year to September, despite August's promising increase according to the latest CBI monthly Distributive Trades Survey.

The survey of 120 firms, of which 63 were retailers, showed that the volume of sales fell, despite expectations last month that sales would be largely unchanged. Sales of clothing, however, outperformed other categories.

Overall, sales volumes for the time of year were considered to be above seasonal norms.The volume of orders placed upon suppliers fell for a sixth consecutive month, disappointing expectations of a rebound in order growth.

Within the retail and fashion sector, footwear & leather were a key driver of the drop in overall volumes, and there was strong growth recorded in clothing.

Slow growth in online sales

Growth in internet sales volumes slowed further in the year to September, although growth is set to pick up in October.

Rain Newton-Smith, CBI Chief Economist, said: “September is normally an important month for retailers and it’s encouraging to see that sales of clothing, DIY goods and hardware are above seasonal norms.

“However, consumer confidence has been dented since earlier in 2016 and higher inflation is likely to squeeze household incomes over the year ahead. With margins remaining tight, retailers are set to continue to operate in a fiercely competitive environment for some time.”

Findings see clothing volumes up 41 percent

30 percent of retailers said that sales volumes were up in September on a year ago, while 38 percent said they were down, giving a balance of -8 percent. Sales volumes in clothing, were up 41 percent.

Photo credit: Kensington High Street, source: Wikimedia Commons