Cautious shoppers trim spending says survey
RETAIL sales slowed in October as consumers limited spending to essentials such as food and drink, the British Retail Consortium has said.
Like-for-like retail sales fell by 0.1% in value terms on same month in 2011, the BRC said, making October one of the worst months for the sector this year.
Total retail sales – which includes new store space – rose 1.1% on the year, slowing from a 3.4% growth in September.
Stephen Robertson of the BRC said: “The disappointing figures are a reminder of the difficult economic realities many are still facing.
“Falling consumer confidence means people are limiting spending to essential items and are cautious about committing to big-ticket and discretionary buying,” he said.
Recent energy and food price increases have stoked fears that the inflation rate – which fell to 2.2% in September – will not fall further, leaving many Britons’ budgets squeezed as wages barely rise.
Sales of food and drink remained steady, with shoppers stocking up seasonal food like hot soups and roast beef as squeezed incomes saw many opting to stay indoors, the BRC said.
David McCorquodale, head of retail at KPMG, which conducts the survey together with the BRC, added: “The disappointing sales figures for October indicate that winning share of the Christmas wallet will be just as competitive over the next two months as it was last year.”
