Spending bubble has burst
June 7, 2022
Falling consumer confidence and soaring inflation mean furniture and flooring are among the biggest casualties as shoppers rein in their discretionary spending.
"Sales continued to see declines as the cost-of-living crunch squeezed consumer demand. Higher value items, such as furniture and electronics, took the biggest hit as shoppers reconsidered major purchases during this difficult time," said BRC Chief Executive Helen Dickinson.
She added: "It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers spending power."
UK retail sales contracted last month as consumers feel the squeeze from the country's cost-of-living crisis according to the latest British Retail Consortium-KPMG retail sales monitor.
On a total basis, sales fell 1.1% in May on a year before. This compared to a surge of 28% in May 2021, though against a lockdown-marred comparison period in 2020.
The effect of inflation on the value of retail sales is also thought to mask a bigger slump in the actual volume of sales in the big-ticket item sector.
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