As news that sales on the high street for November are up year on year, the fifth month in a row this has happened, retailers are predicting a Christmas boost. The figures, released by the CBI, who run a trade survey which represents the views of over 20,000 retailers, will encourage retailers who have suffered as the nation has tightened its belt during the recession.
The survey also shows that 28% of retailers are planning to invest more into their businesses in the next year, showing further confidence that Britain is heading out of its economic slump.
Ian McCafferty, CBI Chief Economic Adviser, was a little more cautious however as he said, “High street sales growth held up well in November, and retailers are hopeful that the run-up to Christmas will be just as strong.
“However, looking into the New Year, retail sales growth may lose some of its sparkle, as consumers rein in spending after Christmas. Confidence remains fragile, VAT is rising in January, and a combination of weak wage growth and high inflation is eating into household incomes.”
With VAT due to increase to 20% in January it waits to be seen whether Britain’s will find themselves with less disposable income to shop with in the new year, but for now, Christmas is looking up for retailers.