Retail sector doing well following two months of growth

The sudden appearance of Spring sunshine is prompting a favorable outlook in the retail sector, paving the way for a much needed thawing out of the credit card for British consumers following the dismal conditions this passing winter which kept shoppers at bay. The figures are looking particularly optimistic in light of February 09’s poor show due to extreme weather conditions in comparison with this February’s 2.2 percent increase on like-on-like sales. March has been the best month for performance with an increase of almost 10 percent on last year; however this is still not enough to reignite a proper recovery on the high street after January’s shortfall of a 0.7 percent decrease according to the British retail consortium. CBI Distributive Trades Survey recently announced that they are expecting figures to grow again during the Easter holiday period at a similar rate. Unsurprisingly womenswear sales were up surrounding Mothers day and Valentines Day, also making an impact was formal wear, lingerie and accessories.

 

 

WGSN claims that shoppers are becoming more savvy about what they buy, a far cry from the frivolous ‘throwaway fashion’ trend of previous years which has been indecently shunned as a result of the recession. Shoppers are being practical, making more informed decisions in favor of items that will last through multiple seasons. While being cautious, shoppers also see the need for rewards, which accompanied with the sunny weather conditions, has prompted the recent improvement in the retail sector.

This new excitement will most probably be short lived with the impending budget announcement with expected tax increases as the Governments plans to tackle the UK’s deficit preceding the predicted election in May. This could possibly frighten consumers into a suspended state of reigning in the purse strings ounce more, especially with unfavorable unemployment rates, as employers do not seem to be hiring more staff even in light of the burgeoning economy. These are uncertain times and it will take time to coax businesses back into regular practices as the recession lessons its grip.

Words by Lynsay McConachie