Consumers shun high street purchases

‘Frivolous shopping’ is off the agenda as cash-strapped consumers kept their hands firmly out of their pockets during July, leading to a further drop in retail sales, the British Retail Consortium (BRC) said today.

The Retail Sales Monitor, by the BRC and audit firm KPMG, found high street sales dropped by 0.9% in July, leading to more misery for retail businesses.

‘Changeable weather’ was one of the culprits blamed for the drop, along with plummeting consumer confidence and increasing demands on household budgets.

“Four of the last five months have now seen negative like-for-like annual sales growth and in July every sector except food recorded falls,” said Stephen Robertson, director general of the BRC.

“Most customers are concentrating on value and durability, and there are few signs the slowdown has yet bottomed out,” he added.

However, Helen Dickinson, head of retail at KPMG said some sectors had seen limited growth.

“Total retail sales and food sales grew compared to the same period last year, although the non-food sector contracted for the second month in a row,” she said.

“The furniture and home-related sectors continue to bear the brunt of falling consumer confidence and increasing demands on household budgets. Women’s footwear was the only highlight, perhaps suggesting a need for a personal treat in the midst of all the gloom.”

© Crimson Business Ltd. 2008