Asda cautious on UK consumer market
Asda, the UK's second-largest supermarket operator, has today reported slowing sales and a reduction in the company market share. The company operates over 350 stores throughout the UK and has a very close eye on the UK consumer market during these troubled times. One specific problem would appear to be disposable income with Asda's "monthly income tracker" showing that average family spend is down 4.2% year on year which equates to a loss of around £7 per week of disposable income.
Despite the fact that a number of the company's main competitors have announced an increase in sales over recent months, there is no doubt that the general trend in the UK retail market is downwards. The news that disposable income is falling in the UK is obviously a major concern and one which is likely to continue for the foreseeable future. Even though in many ways the difficulties being experienced at the moment are in theory not as bad as those at the depths of the recent economic cycle it seems that consumer concerns are greater.
It is difficult to see how UK supermarket operators will be able to push through margin increases in the short to medium term against a backdrop of falling sales and reduced disposable income across the UK.
Share this..
Related stories
Is Union Power Making A Comeback?
The last few months has seen more strike action than we have seen for the last decade from public workers to oil delivery workers and everything in between. Unions have spotted a need for their services and they are more than happy to step into the breach. But what is their real angle? What are they really after?
It is no coincidence that the resurgence of the Union movement is co...
Will the UK economy really bounced back stronger?
Gordon Brown's suggestion that the UK economy will bounce back stronger than ever before has given some people hope in the UK but many are waiting for the proof behind the very upbeat forecast. The figures would suggest that the UK is currently weaker than it has been at any time in modern history and taxpayers and consumers are more concerned than ever before about the immediate outlook.
<...
Economy Shrinks since Coalition Takeover
The UK economy is confirmed to have shrunk since the coalition Government took office two years ago. It has been widely publicised that the economy is once again in decline, but after signs of recovery and growth last year, it was though that the economy would still be larger than when Labour lost their control. This is the last thing Prime Minister David Cameron and Chancellor George Osborne...
Read MoreSupermarkets take 58p of every Retail Pound
A report from the Payments Council has revealed that in 2011 supermarkets took 58pc of the entire retail spend in the UK. This means that almost 60p in every pound spent on the high street goes to supermarkets, a figure that is up from 48p compared to 2001, and marks an all time high. The report also revealed a change in the payment culture of consumers, who are increasingly using plastic in t...
Read MoreBusiness leaders urge government to freeze minimum wage
The UK government has today been urged to freeze the minimum wage in order for businesses to retain their competitiveness in the UK economy amid one of the worst downturns in living history. The call has come from the British Chambers of Commerce which represents a wide spectrum of UK businesses many of whom are struggling to make ends meet. They have suggested that the government freeze the Natio...
Read More