Retailers face tough time as consumers cut back

The UK retail sector faces another tough year in 2012 as consumers continue to cut back, according to a report by Verdict Research.Retailers face tough time as consumers cut backIt claims consumer spending will grow by 1.2% next year, the third slowest rate in 40 years.

Food sales are expected to rise strongly, the report claims, as more consumers will cut back on going out.

Maureen Hinton of Verdict said: “The first three months of 2012 will be the most difficult period for retailers as consumers cut back severely after the expensive Christmas period.

“Conditions will ease slightly with events such as Easter, the Diamond Jubilee and the Olympics improving consumer sentiment, but overall confidence will still be low.”

“Beneath the large retail chains there is a raft of small to medium sized retailers that are struggling to maintain their businesses and don’t have the resources to turn things around – they will be the companies more likely to fail in 2012.”

Analysts say the predicted £10 billion plus spend for the whole of this week will be 2011’s most lucrative for retailers, beating the pre-Christmas rush.

Consumers are expected to have spent at least £22.8 billion by the third week of January.

January 12, 2012 · Home Based Jobs · Comments Closed
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