The Euro 2004 football tournament helped retail sales remain strong in June, with snacks, beer and TV screens all selling well, according to new research.
The Confederation of British Industry’s (CBI) monthly report found that May’s healthy retail sales continued into June, co-inciding with the start of England’s matches in Portugal.
The study found that 57 per cent of firms said sales were up on a year ago, while 14 per cent said they were down.
The balance of plus 43 per cent is a slight drop on the 51 per cent figure in May, but still represents the fastest period of sales growth for two years.
Sales in June were well above average for the time of year, with a balance of 38 per cent of retailers expecting further increases in sales this month.
Despite England crashing out to hosts Portugal, with a little help from the referee, sales of beer, TV screens and garden furniture all soared last month as millions of fans cheered on Sven Goran Eriksson’s team.
This latest report suggests that retailers are still performing well, despite the rising level of consumer debt and the recent interest rate rises.
However, the CBI warned that the impact of the rate rises is yet to be felt.
John Longworth, of the CBI, said that retailers will be wary of the interest rate increases.
“High street firms will be hoping the consumer’s appetite for spending remains undiminished and the Bank of England must be careful not to overdo its attempts to gently slow this area of the economy.
“Last week’s football match saw the mood of English fans sink, but football-related sales have been lifted by Euro 2004,"”he said.
