22% of traders report sales slump

Thursday 26th January 2012, 12:10PM GMT.

High-street sales volumes fell in January after modest growth in December, the CBI said

The high street suffered a New Year hangover as retail sales put in their worst performance in nearly three years, a business lobby group has said.

The CBI said retail sales volumes fell in January, after modest growth in December, with a balance of 22% of traders reporting a decrease on a year ago, the lowest level since March 2009.

The majority of retailers said sales were disappointing for the time of year and orders were also down, with firms expecting levels to fall again next month, the CBI added.

Ian McCafferty, CBI chief economic adviser, said: “Shoppers have reined-in spending across the board at the start of the new year after taking advantage of early discounting last month, which boosted pre-Christmas sales.”