The Confederation of British Industry (CBI) has predicted a 27-year high for retail sales volumes in June.
In the CBI's latest Distributive Trade Survey, volume of sales grew 51%, while in June they are expected to rise 58% – it's highest since September 1988.
Department stores, which generate significant sales in the cosmetics sector, performed extremely well, with sales volumes growing an impressive 98% in the year to May 2015. Orders placed on suppliers also rose more quickly than expected, the fastest pace since December 2010.
Interestingly, companies selling over the internet saw a survey record low, although sales volumes were still up 38%.
Rain Newton-Smith, CBI Director of Economics, said: “Retailers will be encouraged to see growth in sales and orders on the high street bounding ahead. Low inflation, which we expect to remain below 1% for the rest of the year, has given household incomes a much-needed boost and greater spending power. Overall the outlook is bright for firms on the high street, but challenges still remain, especially for food retailers, who are still feeling the heat of stiff price competition from new entrants to the sector. And investment plans have also taken a hit.”
The Distributive Trade Survey involved the input of 134 companies including 63 retailers.
