Retail sector gets boost from Booker's better performance

Signs of life in the beleaguered retail sector emerged today when wholesaler Booker unveiled a jump in sales.

The cash and carry retailer which supplies thousands of UK convenience stores, grocers and pubs with stock says business is on the up.

Sales in the first quarter of the year rose 7.8%, much better than it expected two months ago.

At the company annual results in May, Booker offered a downbeat assessment of the immediate future. It said at the time that it did not expect sales growth to match the 6.4% achieved in the fourth quarter of last year.

However, higher sales are not yet leading to upgrades in Booker's profit forecast, which remains in line with expectations.

Chief executive Charles Wilson said ahead of the annual shareholder meeting: "Booker continues to make progress in a challenging market.

"We are helping 414,000 independent businesses compete by improving choice, having competitive prices and enhancing service."

Today, its shares opened at 33.5p.