Answering Practices Survey of CBI Distributive Trades Survey respondents Jonathan Wood – Head of CBI Survey Management Group October 2009

Distributive Trades Survey ●Launched in 1983 ●Covers the retail, wholesale distribution and motor trades sectors ●4 questions in monthly survey, covering sales volumes, orders placed upon suppliers, sales for the time of year and stocks. ●Additional questions in quarterly surveys (Feb, May, Aug, Nov) on imports, prices, employment, investment and the business situation. ●Around 150 respondents each month. ●Data from the survey is supplied to the European Commission (EC). ●The EC also have their own questions embedded in the survey.

DTS Answering Practices Survey ●Conducted in order to maximise understanding of how respondents answer the DTS ●Third Answering Practices Survey undertaken for the DTS. ●Conducted between 12 th and 28 th November ●121 responses – approximately 75% of the usual response rate.

Who usually completes the DTS survey questionnaire?

At what level are the survey results used in your company?

Volume of sales 1 What do you define as the reference period for comparison of year-on-year sales volumes?

Volume of sales 2 Is any adjustment made for sales generated from additional selling space?

Volume of sales 3 Is any adjustment made for seasonal variations?

Volume of sales 4 Do you include sales made outside of the UK?

Volumes of sales and orders With reference to expected sales volumes and orders placed on suppliers, do these expectations reflect?

EC questions Interpretation of ‘trend over the past three months’

Volume of sales for the time of year How do you assess sales volumes as being ‘average for the time of year’?

Volume of stocks How do you assess the ‘adequacy’ of stocks?

Imports How do you assess whether the proportion of deliveries from suppliers accounted for by imports is more/less/the same?

Prices 1 Comparing change in prices on a year ago

Prices 2 How do you assess the change in ‘average selling prices’ of your products?

Prices 3 Do you revise list prices at which your goods are charged at the same time every year?

Employment How do you determine your response referring to the total numbers employed?

Prices and employment Interpretations of expectations for the month ahead

Investment intentions What proportion of your total capital spending in a year is accounted for by:

Business situation 1 When asked about business situation prospects, do you respond in terms of:

Business situation 2 Is your assessment of business prospects ahead compared to:

Survey management issues Would you like to be offered the choice of being able to complete the survey online/by as well as by post?

Conclusions ●Answering Practices Survey highlights issues that should be considered in interpreting results of the Distributive Trades Survey. ●Some variation in responses to most questions. ●Often a split between Retail/Wholesale and Motor Trades, or Retail/Motor Trades and Wholesale. ●Some questions could benefit from better clarification. ●However, broad consistency in responses for some questions. ●Highlighted new areas for development.