Conflicting news from the UK high street
Today's confirmation that like-for-like sales on the UK high street fell by 0.1% in August, compared to August 2008, were a disappointment to many to say the least. The British Retail Consortium believes the retail sales rose in June and July due to the hot weather and significant discounts available especially in the clothing and furniture markets. However, August was a very different picture with only food sales increasing on a like-for-like basis while the sale of footwear, clothing, furniture and homewares were significantly down.
This is yet another disappointment for the UK retail sector after a number of companies reported increased demand over the last few months. Aside from the fact there will obviously be good months and bad months as we approach an eventual recovery in the sector, it is the fickle attitude of the UK consumer which is causing most concern within retail circles.
When you also consider that the UK government has pumped billions upon billions of pounds into the quantitative easing program, reduced VAT and generally tried to revive the UK economy, what will happen when these particular support programs are removed?
There is no doubt that the UK economy needs to be able to stand on its own 2 feet over the next few months although at this moment in time this seems as far away as ever.
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