High street sales hit by cautious consumers
Mar 08 2011
Retail sales in February dropped 0.4 per cent on the same month last year
UK retail sales in February dropped 0.4 per cent on the same month in 2010 as shoppers cut back on spending, according to the BRC-KPMG Retail Sales Monitor.
Non-food sales experienced a sharp decline in sales, with clothing, footwear and homewares taking a hit. Big ticket purchases suffered most, according to the report.
The British Retail Consortium’s director general Stephen Robertson says, ‘After the big boost to January’s figures from one-off factors, including a strong final burst of pre-VAT rise spending, February’s figures are a return to a more realistic picture of how things are for customers and retailers.’
He adds, ‘Even online, the growth in sales of non-food items slowed to an 18-month low. Customers are cautious and cutting back in a big way on non-essential spending.’
Helen Dickinson, head of retail at KPMG, agrees, ‘Consumers are readjusting their spending habits to reflect the reduced disposable income in their pockets and the question for retailers is whether they have finished yet.’
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