High street sales continue to fall
- 00:02:59
- ITN
High street sales continue to fall
UK retailers are continuing to struggle as consumers rein in spending amid the global banking crisis. September like-for-like sales fell 1.5 per cent and figures have been down in six out of the last seven months, the British Retail Consortium (BRC) has said. Inflation and higher mortgages have been hitting shoppers' disposable incomes meaning business is the worst since 2005. During the month, big-ticket furniture sales saw their biggest year-on-year fall since 2000, and the rapidly-declining housing market and banking chaos meant even heavy discounting and price-cutting often failed to tempt more customers. BRC director-general Stephen Robertson said: "The financial turmoil has further undermined consumer confidence. Impulse buying is disappearing as people consider purchases carefully and actively seek out promotions." The retail sector is now hoping the looming festive season will improve fortunes. Helen Dickinson, head of retail at survey sponsor KPMG, said: "The key question now is not what has happened but what will be the impact of the current environment on sales over the crucial Christmas trading period - many will be holding their breath." Food and drink was the only sector showing sales significantly up on a year ago, although the growth was the weakest since March and food price inflation accounted for the lion's share. Shoppers with tight budgets concentrated on discount ranges with organic products and exotic fruit giving way to mince and sausages, the BRC said. Clothing sales also worsened despite price cuts and stock clearance of summer goods - with only children's clothing and footwear gaining a minor boost from back-to-school sales. Autumn clothing also gained a minor fillip from colder weather. In the BRC's less volatile three-month measure, like-for-like sales also fell 1.1 per cent between July and September.
ITN | October 14, 2008
