Retail sales dipped in May with many retailers putting this down to consumers’ unwillingness to spend. The British Retail Consortium said May sales values fell 2.1% compared with May 2010.
Tough conditions on the high street have seen many retailers reporting losses with consumers buying fewer items across the board. Sales of clothing, footwear and big ticket items are all falling but food has been a fairly resilient market. Stephen Robertson, the BRC’s director general has said “I guess people are saying ‘we can put it off for another day before we buy a sofa or bed or other big items’”.
The BRC has commented that the general public’s disposable incomes were being squeezed by high inflation and low wage growth. Uncertainty over the effects of Government cuts were also affecting consumer confidence in spending, choosing instead to save their money to ensure the safety of future finances.
Retailers are feeling the effects of the sales dip and the rise of fuel prices and raw materials is also not helping.
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