Recession Lingers and Lingers...

Tuesday 14th of July 2009 07:50:29 PM

Recession Lingers and Lingers...

UK High Street retail sales suffered again in July which should normally be a high revenue month due to the nice weather luring shoppers to the stores. According to a Distributive Trades Survey run by CBI, the drop in retail sales for July is expected to continue into August. This is bad news for struggling retailers selling a variety of items including polo shirts.

The only good news is that the sales declines are moderating compared to the first five months of the year. The retailers surveyed indicated that 47 percent of those surveyed experienced sales downturns on a year-on-year basis as of July. The real problem is that poor summer sales will make it difficult for some retailers to survive until the holiday season which is the next major retailing opportunity.

Consumers who do shop are finding that inventory in stores is way down too. They are defined as adequate but the ravages of the recession are apparent when looking at store shelves. Retail suppliers are reporting that orders continue to fall as retailers work on reducing costs during the recession.

Interestingly, two retail sectors indicating sales growth are in footwear and leather.

Andy Clarek is the Chairman of the CBI Distributive Trades Panel. He is also the Asda Chief Operating Officer. He was quoted as saying, “"Many retailers are having a difficult summer and no pick-up is expected in August. But the overall sales falls are not as heavy as we saw at the start of the year, and some retail sectors are reporting growth. The recent sharp rise in unemployment will worry many consumers, and is likely to constrain sales growth in the months ahead." The CBI is the voice for over 240,000 UK businesses.

Another factor impacting High Street retailers is the internet. Many shoppers for items such as sweats are going online to find the best price possible.