UK retail recruitment is highest for a decade

RETAILERS took on more staff for the first time in nearly a decade in May as stores geared up for an anticipated sales boost this summer.

The CBI, whose latest survey of the retail sector covered the first two weeks of May, said responses indicated the recruitment drive will continue into June.

It also found that some 43% of retailers saw an increase in sales volumes compared with a year ago, while 23% reported a fall. The balance of plus-21% was the best result since April last year and was accompanied by an upturn in sentiment about trading conditions over the next three months.

The sales improvement was driven by grocery stores, department stores and furniture and carpet retailers, although the CBI noted that the majority of respondents said sales were still below average for the time of year.

The number of people employed in the retail sector increased on a year ago, ending a decline dating back to February 2003, and a majority expect to recruit more staff compared to a year ago in June, the industry group added.

The optimism comes as retailers hope for a busy summer, with the Queen’s Diamond Jubilee celebrations and the Olympics set to boost sales.

Judith McKenna, chairwoman of the CBI’s retail survey panel, said: “It’s encouraging to see high street sales up compared to a year ago, and that business sentiment about the next three months has improved.”

However she warned that high unemployment, slow wage growth and weak consumer confidence would keep retailers under pressure in the short term.