Retail sales fell during October, ending a seven-month reign of growth, but food sales bucked the trend with “healthy sales growth”, according to a distributive trades survey.

Some 38 per cent of retailers said sales had increased on the same period last year, but 42 per cent reported a fall in their volume of sales. The balance of minus four per cent is the weakest since March, according to CBI’s monthly report.

Despite the unexpected dip overall, retailers are reportedly optimistic for sales growth across November, saying sales this month were close to normal for the time of year.

The report showed mixed results across the sectors, and while general food sales were up, sales of specialist food fell for a balance of 71 per cent - the fastest decline since December 2002, according to CBI.

And while overall wholesalers’ volume of sales continued to grow, the sector’s sales of food and drink slowed.

John Longworth, chairman of the CBI’s DTS Panel and executive director of Asda said: “October’s dip in sales ended six months of growth for retailers. This is doubly disappointing as it confounded more positive expectations. It remains to be seen whether this is a return to the tough conditions seen during 2005 and early 2006, or simply a blip in an otherwise upward trend.

“A number of sectors still saw sales grow - food, drink, clothing and consumer durables reported healthy sales growth. Others may now see sales pick up once more in the run up to Christmas.

“We will have to wait for November’s figures to see if the warmer, wetter weather we're experiencing puts the Christmas build up on hold and if the widely anticipated interest rate rise materialises and dampens festivities and retailers’ sales.”

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