Well, it will probably come as no surprise to learn that Britain’s shoppers are shunning big ticket items such as furniture and white goods, have cut back on luxuries, and are searching for bargains.
According to the latest distributive trades survey from the CBI: “The UK high street endured another month of falling sales and expects the hard times to continue in October, but supermarkets enjoyed solid sales growth.”
The percentage balance between retailers saying sales were up in the first half of September 25, and those saying it was down, was minus 27.
Now it has been worse than that, in fact it was worse last month – seeing a score of minus 46. July was also worse – seeing minus 36. But that is it. In the 25-year history of this survey, the September score was the lowest score ever recorded before this summer.
John Cridland, CBI Deputy Director-General said “Sadly, there has been no Indian summer after the sales washout of August, and the retail outlook for early autumn remains bleak. Consumers are feeling the brunt of the economic slowdown as the UK endures what is likely to be a short and mild recession.
“As inflationary pressures ease over the next few months, the Bank of England should have some leeway to lower interest rates, and a 0.5 per cent cut in November would provide some welcome relief to consumers and businesses.”
Then again, no doubt those working in the motor trade would love to have the High Street’s problems. The CBI said: “Over the year to September, motor traders saw sales volumes fall heavily (a balance of -78 per cent) for the fourth month running, and October is set to be similar (-86 per cent ). The weak demand is shared by both sellers of vehicles and parts & accessories.”
It is worth bearing in mind there is this remarkable contradiction between CBI figures on retail sales and the official ONS data – which is still recording increases in sales.
Perhaps the real problem with the High Street, though, is that we just got too used to a level of sales that was unsustainable. Consumer spending grew too fast and too far in the late 1990s and earlier this decade.
Above, it was told how Dr John Sentamu, Archbishop of York said yesterday that: “We have all gone to this temple called money. We have all worshipped at it. No one is guiltless . . . we have all become enslaved.”
Maybe, though, another god was worshiped too. The god of retail therapy, and maybe that particular deity was always destined to go the way of Zeus and Hera, into books entitled Myths and Legends.
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