SarahBell Posted August 26, 2010 Share Posted August 26, 2010 http://www.guardian.co.uk/business/2010/aug/26/high-street-sales-three-year-high-cbi High street sales hit three-year high, says CBI CBI survey reveals retail sales growing at fastest rate since April 2007, boosted by price reductions and warm weather Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 26, 2010 Share Posted August 26, 2010 I personally do not believe it. Quote Link to comment Share on other sites More sharing options...
neil324 Posted August 26, 2010 Share Posted August 26, 2010 More ammo for a rate rise? Quote Link to comment Share on other sites More sharing options...
Dorkins Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
Mega Posted August 26, 2010 Share Posted August 26, 2010 More stuff sold....or does it cost more eg INFLATION rise? Mike Quote Link to comment Share on other sites More sharing options...
Frenchie73 Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
neil324 Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted August 26, 2010 Share Posted August 26, 2010 I personally do not believe it. I do not believe it either. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted August 26, 2010 Share Posted August 26, 2010 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 26, 2010 Share Posted August 26, 2010 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. Depressing... but true... Quote Link to comment Share on other sites More sharing options...
winkie Posted August 26, 2010 Share Posted August 26, 2010 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 . Quote Link to comment Share on other sites More sharing options...
payback period Posted August 26, 2010 Share Posted August 26, 2010 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? Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted August 26, 2010 Share Posted August 26, 2010 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 Quote Link to comment Share on other sites More sharing options...
Pole Posted August 26, 2010 Share Posted August 26, 2010 http://www.guardian.co.uk/business/2010/aug/26/high-street-sales-three-year-high-cbi everything is on the way up and it will get even better!!! Long live our ministers, our bankers and their very knowledgeable advisers! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.