Reported on Thu, 30 Mar 2006

High street shops have struggled in March, according to a new report, but taking out a business loan could help companies boost their performance before the expected springtime rush.

According to the Confederation of British Industry (CBI), 35 per cent of retailers reported lower sales volumes in March, while only 18 per cent noted an improvement.

The decline has been especially noticed in the market for sales of clothing and footwear and with home improvement goods representing one of the few sectors to buck the trend, the reasons may be partly seasonal.

"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," said John Longworth of the retail survey panel for the CBI.

Some hope has been provided by the fact that the CBI's monthly sales balance for March was a slight improvement on February's balance of minus 18 and with warmer weather ahead, this gradual recovery should be set to accelerate.

With high street profits usually surging ahead in the early summer months, now could be a good time for firms to overcome the effects of a quiet winter by taking out a business loan.


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