RETAIL sales worsened in March despite previous expectations of modest sales growth according to the CBI’s latest survey.

The Distributive Trades Survey, which covers 20,000 retail outlets responsible for 40 per cent of employment in retailing, reported that sales for the time of year are seen as the worst since November 1992, suggesting that severe weather conditions that brought much of the South East to a standstill in March could have contributed to the poor performance.

Malcolm Hyde, CBI South East regional director (acting), said: "Retailers had been expecting stronger sales growth in March but for the third month in a row volumes failed to meet expectations.

“Some of this poor performance might be attributed to the wintry weather at the beginning of March and a reluctance for consumers to spend ahead of the Budget. But there is no doubt that sales growth has slowed on an underlying basis since the turn of the year."

Firms cut back on orders placed with suppliers but the fall in sales caused an unexpected jump in stocks. A balance of 22 per cent of firms reported stocks were high in relation to expected sales.

Sales of durable household goods, such as washing machines and DVD players reported the fastest year-on-year growth. Grocers, confectioners, booksellers and stationers and clothing stores also saw healthy growth. Stores selling furniture and carpets reported the sharpest year-on-year fall in sales, followed by those selling hardware, china and DIY, chemists and specialist food shops.

Wholesalers' sales growth fell by more than expected in response to the dip in retail sales since the beginning of this year. Businesses reported the fastest increase in stocks since July 2002.