Shop sales are down for the third month running disappointing retailers, a new survey suggests.
According to the Confederation of British Industry's (CBI) Distributive Trades Survey, 35% of retailers’ volumes were down this month, compared to March 2005, and only 18% were up, leaving a balance of minus 16%.
Retailers had been hoping for a split of around 5%, although the figures were a mild improvement from February this year, which had a balance of minus 18%.
Expectations for sales volumes in April remain fairly subdued at minus 7%, however retailers have been over-optimistic for the last three months.
John Longworth, chairman of the CBI's DTS Panel said: “The marginal improvement on February is cold comfort to retailers, who continue to face the same tough conditions - subdued sales allied with rising costs.
“Companies' profits remain hemmed in on all sides by rising rent, rates and energy costs, as well as environmental taxes and the minimum wage.
“The colder weather during March has kept Spring on hold, putting the stops on people buying new clothes and venturing out of doors and into the high street.
“But at least an improving housing market is helping to bring sales of some big-ticket household items, such as furniture and carpets, out of the doldrums.
“There is still room for a quarter point cut in interest rates over the next few months to help stimulate consumer demand."
