Credit card spending up as High Street sales remain sluggish

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Olympic ticket sales will mean credit card spending is up, despite results that show high street spending is still ‘sluggish’.

A poll from CBI, an employers organisation found that only 45% of retailers had seen a year on year increase in sales, while 24% had seen a year on year drop.

Figure, whilst inline with general expectation, are poor for the time of year, with many retailers adding they expected to see sales remaining at similar levels throughout May.

Despite the gloom, grocery stores and clothing retailers continued to see strong growth, with footwear shops, those selling expensive electrical goods and durable household goods seeing the worse growth.

Ian McCafferty, chief economic adviser from the firm said, “Despite slightly better year-on-year sales growth in April, this survey shows things are far from rosy on the High Street.”

“For the third month in a row, retailers considered sales to be unseasonably poor, stocks are running quite high, and orders with suppliers are expected to fall.”

Analysts recognised the increases retailers would have felt from a late Easter and sunny weather, but also warned of caution with high rates of inflation, and very little wage growth affecting consumer spending in the next year.

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