Following a sharp fall in retail sales in July, the Confederation of British Industry (CBI) expects August to be a bleak month for consumer spending.

 

In the recent Distributive Trades Survey, 61 percent of those who took part reported a drop in sales compared to the previous years’ July, with just 25 percent reporting an increase. The remaining balance of -36 percent was the weakest since the survey began in 1983, with a similar result expected in August.

 

Andy Clarke, chairman of the CBI distributive trade’s panel and retail director of Asda, says: “It is turning out to be a very grim summer for many retailers. Pressure from higher fuel and food prices is prompting many people to rein in their spending. The retail sector will have to focus more than ever on providing good value to customers if they want to keep the sun shining this summer.”

 

Looking further into the survey, demand for big-ticket items was especially weak, with every respondent selling durable household goods, furniture and carpets reporting that sales were down on a year ago. Clothing retailers endured another poor month, but grocers, supermarkets and footwear and leather retailers were the only sectors to report growth.

Bookmark Us
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google
  • Reddit
  • StumbleUpon
  • TwitThis

Our Random Articles

More Links