Jump to content
House Price Crash Forum
Sign in to follow this  
SarahBell

High Street Sales Up

Recommended Posts

The real question is, what exactly is being measured?

From the CBI press release:

Volumes of sales on the high street were higher than a year ago in August, the second consecutive year-on-year increase, according to the latest CBI quarterly Distributive Trades Survey.

Retailers expect sales to continue growing in September and they are more optimistic about the general business situation in the coming three months.

Over half of the retailers surveyed (53%) said that the volume of sales rose during the first two weeks in August while 18% said that it fell, giving a balance of +35%. This was similar to the pace of sales growth in July (+33%), and the fastest since April 2007, though it was slower than expected (+45%).

Sales volume indicates the number of goods being sold, not their price. This could easily be a situation in which people are buying a greater number of cheaper items rather than a smaller number of more expensive ones (e.g. Poundland not M&S). If this is what is happening it could well be bad for retail profits if margins are low on the cheaper items.

Plus of course this is only a survey of retailers which relies on them being truthful and the data don't seem to be weighted according to retailer size or turnover. As a measure of economic performance, it's about as sketchy as they get.

Share this post


Link to post
Share on other sites

Maybe it's based on the number of people who rushed to buy an iPad, iPhone...

Other possible explanation: the rubbish returns on savings.

It's so bad that it doesn't encourage anyone to do anything other than spend.

Share this post


Link to post
Share on other sites

More stuff sold....or does it cost more eg INFLATION rise?

Mike

The survey is asking retailers about the amount of goods being sold, not the price. The survey does claim that prices are up on a year ago too:

66% of firms said average selling prices rose on a year ago, and 9% said they fell, giving a rounded balance of +58%. This is the fastest pace of price increases since February 1992 (66%).

Should this be believed? Are consumers buying the things that have gone up in price, or are they shopping around for bargains while the more expensive goods sit on the shelves pulling up average prices but not actually being sold? As I say, these measures are so sketchy as to be almost meaningless. The thing that really matters is the number of pounds being put in the tills minus the cost of putting goods on the shelves. I agree with TMT, that number will almost certainly be a lot worse than some puff piece industry insider questionnaire.

Share this post


Link to post
Share on other sites
For the third quarter running, price inflation has accelerated. In this survey, 66% of firms said average selling prices rose on a year ago, and 9% said they fell, giving a rounded balance of +58%. This is the fastest pace of price increases since February 1992 (66%).

Seems to be gathering pace now, did'nt we have high inflation 1992-1993 also.

Share this post


Link to post
Share on other sites

The real question is, what exactly is being measured?

From the CBI press release:

Sales volume indicates the number of goods being sold, not their price. This could easily be a situation in which people are buying a greater number of cheaper items rather than a smaller number of more expensive ones (e.g. Poundland not M&S). If this is what is happening it could well be bad for retail profits if margins are low on the cheaper items.

Plus of course this is only a survey of retailers which relies on them being truthful and the data don't seem to be weighted according to retailer size or turnover. As a measure of economic performance, it's about as sketchy as they get.

you missed the key trick to this.

There are LESS retailers this year than last.

therefore, sales PER REMAINING RETAILER, could well be up, although total volume could be down.

Share this post


Link to post
Share on other sites

you missed the key trick to this.

There are LESS retailers this year than last.

therefore, sales PER REMAINING RETAILER, could well be up, although total volume could be down.

Yes, Mish makes this point about same store sales in the US. But retailers here don't seem to have closed down shops so much.

I find the shops pretty busy, but it's the price cuts that are the unquantified bit. I still don't see price rises in the stuff I buy - or at least any I see are balanced by reductions in other things.

Share this post


Link to post
Share on other sites

Why are all the retailers in the uk the some old boring large multi corporates selling the same stuff ranging from cheap and nasty to nice but over priced...all the high streets look the same and sell the same.

Went to France recently and the high streets were a completely different setup individual independent stores selling quality produce to a community that spent their money supporting local well run businesses many family run and thriving.....no litter on the streets and some beautiful flower displays, also almost all the French drove French cars,,, I could go on, where have we gone wrong, we have priced our SME out and now all we will have left is the large monopolies that will set the price for inferior quality that we imo are prepared to put up with. :ph34r:

Share this post


Link to post
Share on other sites

Maybe it's based on the number of people who rushed to buy an iPad, iPhone...

Other possible explanation: the rubbish returns on savings.

It's so bad that it doesn't encourage anyone to do anything other than spend.

I don't get that argument.

If returns are rubbish, and you're saving for something, you'll surely need to spend even less to make up for the lack of interest.

If you're dependent on savings income, same applies.

Though I suppose if you're neither, you might just think, sod it.

As for sales going up, maybe people are thinking of the impending rise in VAT.

And of course making all those massive, never-to-be-repeated 'savings' at DFS and Dreams. ;)

Share this post


Link to post
Share on other sites

Why are all the retailers in the uk the some old boring large multi corporates selling the same stuff ranging from cheap and nasty to nice but over priced...all the high streets look the same and sell the same.

Went to France recently and the high streets were a completely different setup individual independent stores selling quality produce to a community that spent their money supporting local well run businesses many family run and thriving.....no litter on the streets and some beautiful flower displays, also almost all the French drove French cars,,, I could go on, where have we gone wrong, we have priced our SME out and now all we will have left is the large monopolies that will set the price for inferior quality that we imo are prepared to put up with. :ph34r:

Depressing... but true...

Share this post


Link to post
Share on other sites

I don't get that argument.

If returns are rubbish, and you're saving for something, you'll surely need to spend even less to make up for the lack of interest.

If you're dependent on savings income, same applies.

Though I suppose if you're neither, you might just think, sod it.

As for sales going up, maybe people are thinking of the impending rise in VAT.

And of course making all those massive, never-to-be-repeated 'savings' at DFS and Dreams. ;)

Often these items are cheaply made and not so nice....nothing to pay for ages then interest free for even longer, often well worn out and tired before you even think about starting to pay for it . ;)

Share this post


Link to post
Share on other sites

CBI survey reveals retail sales growing at fastest rate since April 2007, boosted by price reductions and warm weather

Summer sales benefitted from demand brought forward before January VAT increase?

remember reading soemwhere plastic bag demand is down

because people don't want to pay 5p a time for them?

Share this post


Link to post
Share on other sites

Not surprising really with terrific sales going on for months everywhere. I've done almost all my Christmas shopping, 70% off in some cases.

Perfume, handbags, lingerie, polo shirts, golf trollies, booze.... you know what I mean. All I have left to buy is the food and choccy stuff

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.