Comment on the Confederation of British Industry (CBI) Distributive Trades Survey for September 2009

Richard Lowe, Head of Retail and Wholesale, Barclays Commercial Bank said:

"The climate for retailers remains tough and although we have seen some major businesses posting good results, the shape of the retail sector overall is prompting mixed views.

Today's figures highlight the evidence we have noted over the past few months; that the sector is flat for the moment.

"The rise in VAT may bring good news for businesses in the short term as shoppers may consider picking up larger discretionary items in advance of any percentage hike proposed for early next year.

However the impact of this on sales in the New Year remains to be seen.

"Growth is still evident in some parts of the sector and an ebb in sales over August and early September can likely be attributed to the changing seasons and the fact that the chill of winter is yet to bite.

For the new season's lines to move off the shelves, retailers will be looking out for a cold snap to encourage the public to look for new seasonal essentials in both clothing and homeware.

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