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Political uncertainty worries shoppers
10:06, 11 May 2010
updated: 10:06, 11 May 2010
by political editor Trevor Sturgess
Political uncertainty is worrying shoppers, according to the latest retail figures.
While politicians try to form a government, the British Retail Consortium-KPMG Retail Sales Monitor published today shows like-for-like sales values in April down 2.3 per cent on the same month a year ago. Overall sales fell by 0.2 per cent.
But in a mixed picture the BRC said the timing of Easter had an impact and sales in 2010 to date were up 3.8 per cent.
Food sales dipped, and non-food items were affected by an earlier Easter, pre-election uncertainty and consumer caution, with consumer favouring essentials and replacements over discretionary purchases. Clothing and footwear slowed and homewares fell back below year-earlier levels.
Sales over the internet, telephone or by mail order were nearly 16 per cent higher than a year ago.
Stephen Robertson, BRC director-general, said: "There's no question customers are more willing to spend than 12 months ago but still nervous. People need to know how a new Government's moves to tackle the deficit will affect their incomes and jobs. Even if the measures are tough, knowing what they are could be better than the current uncertainty."
Helen Dickinson, head of retail at KPMG, said: "The timing of the majority of Easter spending, falling into last month but in April last year, has deflated this month's figures and makes year-on-year comparisons difficult.
“However, even taking this into account, the general malaise of the consumer is evident and looks likely to remain, for a while at least, given the uncertain political and economic environment."
She added: "Retailers are working hard to manage their costs and stay competitive while demand remains so volatile."
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