• Consumer confidence remains resoundingly low

    by
    Harriet Weston
    Published on 20th December 2011 10:38 AM
    0 Comments Comments

    Figures today from Nationwide reveal less than promising news for retailers. An increase of four points in confidence effects no significant change for a retail sector under considerable strain. The figures shown represent all too well a gloomy trend for high street consumers. The overall index score this month has increased to 40 from a record low of 36 in October, while the spending index rose two points to 77.

    The last dash for Christmas presents has begun this week and with more people feeling a pinch in their pockets, online shopping sales have surged as people shy away from Britain’s high streets. The number of high street casualties is expected to rise this month as more household names and leading corporations are still suffering. Recent reports have shown profit warnings issued by the British retailers are at alarming levels. Meanwhile the UK online retail market is growing at a rate of 14% year-on-year, with Britons spending an estimated £7.25bn shopping on the internet - £760 million of which is now being spent weekly.

    Kevin Flood, retail expert and CEO of consumer blogging platform Shopow (www.shopow.co.uk), said, “The figures indicate that consumer confidence continues to have a significant impact at the tills and the news of rocketing inflation won’t do much to give shoppers the confidence to recommence their spending. One positive however is that many British consumers feel that now is the time to make a big ticket purchase, a notion which will receive the warmest of welcomes on the high street.”

    “The pressure is on the retailers in the approach to Christmas as many are finding that more aggressive discounting is necessary to prevent what could be a difficult season. However, with purse strings tightened, shoppers are using alternative means of shopping, and are sharing the deals and discounts they have discovered. The retailers who make social shopping accessible will benefit from natural, word of mouth exposure.”