The business organisation has released its Distributive Trades Survey results for the first two weeks of February, which saw overall retail sales "stabilise."
The survey showed little change in retailers' sales volumes compared to this time last year, but the CBI said this was better than expected. 34% of participating retailers reported an increase in sales volumes while 36% reported a decrease. The resulting balance of -2% showed a significant improvement on last month's balance of -22%, and exceeded expectations of -10%.

The balance for hardware and DIY sales was less optimistic at -90%. Sales of durable household goods were even worse with a balance of -100%, meanwhile.

It was a more positive picture for wholesalers, who beat expectations both on the increase in the volume of sales (+42%) and the volume of orders placed upon suppliers (+36%). 21% more wholesalers said they felt more positive about business than those who did not, but this was not reflected in firms' investment intentions, which was -10%.

The growth in the volume of orders placed upon suppliers across the entire retail sector was also reported as weak at -4%.

Price inflation in shops showed a balance of +49%, down from its peak a year ago (+73%) and at its lowest since late 2010 when it was +45%.

Looking ahead, the CBI reported retailers to be expecting the volume of sales to remain "broadly flat" in March. Sentiment about the general business situation over the next three months remained negative for the fifth quarter in a row. The CBI also reported investment indentations to be at their lowest since February 2009 at -43%.

CBI distributive trades panel chair Judith McKenna said: "Consumers are clearly continuing to focus their spending on day-to-day needs, rather than big ticket or luxury items. With disposable incomes under constant pressure, retailers remain concerned about the general business outlook for the rest of 2012."

Firms responding to the Distributive Trades Survey are claimed by the CBI to represent a third of the country's retailers.