Retail sales slump: ‘the biggest in 16 years’
8:00 am - April 12th 2011
| Tweet | Share on Tumblr |
Consumers’ underlying uncertainty about jobs and incomes have hit retails sales very sharply, according to figures out today by the British Retail Consortium.
Stephen Robertson, Director General, British Retail Consortium, said today:
This is the worst drop in total sales since we first collected these figures in 1995. Non-food retailers were particularly hard-hit. This is strong evidence of the pressure customers and traders are under. This year’s later Easter is a factor but this fall goes way beyond anything that can be explained by that alone.
Uncomfortably high inflation and low wage growth have produced the first year-on-year fall in disposable incomes for thirty years. Mounting fuel and utility costs, falling house prices, higher VAT and the prospect of more tax rises and job losses left people unwilling to spend unless they really had to.
These pressures aren’t going away and the arrival of higher National Insurance is likely to compound them in the immediate future.
The next interest rate decision is a difficult balancing act for the Bank of England but, for now, supporting our weak economy must be the priority.
Don’t worry guys, George Osborne’s Enterprise Zones will turn things around!
It’s not like lefties predicted that adding more uncertainty into the economy through deep cuts would make things worse huh?
| Tweet | Share on Tumblr |  |
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
· Other posts by Sunny Hundal
Story Filed Under: News
Sorry, the comment form is closed at this time.
Reader comments
In the reality-based world, rather than press releases pumped out by self-interested trade bodies, it’s probably a good thing that retail sales find a new level. Previously, consumers spent beyond their means.
The UK economy’s move towards a sustainable economy involves a steady change in the relationship between consumers and retailers, and the nature of consumption.
“it’s probably a good thing that retail sales find a new level. ”
What if that new level involves unemployment at 3 million?
“What if that new level involves unemployment at 3 million?”
Thanks for the false dichotomy. Logic fail.
rather than press releases pumped out by self-interested trade bodies
Erm, those are the facts, not bits of spin. And it indicates how low consumer confidence is at the moment – and that will have an effect on the economy itself.
The BRC data is pretty damn reliable, as far as stats go – definitely up with ONS output data, rather than down with opinion polls and recorded crime.
@AnotherTom: yes, because a shrinking economy will *surely* mean more jobs.
I think some people underestimate how in the shit retailers are.
Even some very very big high street names are rumoured to be close to breaking point if things don’t improve during Q2.
No amount of extra bank holidays, street parties or royal weddings will fix this mess.
“Previously, consumers spent beyond their means.” AnotherTom
Actually, Osborne’s plans assume very considerable increases in private household debt – spending beyond their means – as was reported here last week. Ordinary consumers are indeed expected to pick up where private lenders and the public sector won’t. Not the move to sustainability you were thinking of, is it?
Also, the unemployment thing – not a false dichotomy.
Reactions: Twitter, blogs
-
Liberal Conspiracy
Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Adam Jennison
RT @libcon: Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Lee Hyde
RT @libcon: Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Chris Keegan
RT @libcon: Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Martin Shovel
RT @libcon: Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Greg Sheppard
RT @libcon: Retail sales fall off a cliff: 'biggest in 16 years' http://bit.ly/ftG3zz
-
Soho Politico
RT @libocn Retail sales fall off a cliff http://t.co/JzUtafV Sunny: Don’t worry guys, Osborne’s Enterprise Zones will turn things around!
-
Is Labour preparing for the coming economic upheaval? Doesn’t look like it | Liberal Conspiracy
[…] today’s entirely unsurprising news that retails sales have had the biggest slump in 16 years. Add that to the manufacturing slump, constant cuts to growth predictions and falling real wages […]
Sorry, the comment form is closed at this time.
