Discounting weighs on retail results

The retail sector suffered a surprise dip in sales growth in February, following six months of buyoant sales, the CBI said.
By The Newsroom
Published 23rd Feb 2015, 15:27 BST

Results from the latest Distributive Trades Survey found volumes of sales and orders failed to meet growth expectations.

Three in 10 respondents reported sales volumes were up on a year ago, compared to 29 per cent that said they were down, giving a balance of +1 per cent.

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This was significantly below expectations of around +42 per cent and the lowest since November 2013.

Rain Newton-Smith, CBI director of economics, said “continually heavy discounting” in the grocery sector seems to be weighing on activity.

Despite this, the 138 businesses canvassed for the report, including 62 retailers, remained optimistic about a return to growth in March.