Shoppers have waited a long time to be able to hit their favourite stores without having to face Covid-19 restrictions. However, instead of heading to the high street in droves, many have tightened their purses and refused to spend a penny in the wake of the cost-of-living crisis.
According to the latest figures from the Office for National (1) Statistics (ONS), retail sales volumes dropped by 1.6 per cent in August, with all main sectors declining over the month. This is the first time this has happened in over a year.
It is not just shopping centres and the high street that has been impacted, as retail sales online dropped from 26.3 per cent in July 2022 to 25.7 per cent the following month.
ONS reported: “Consumers are cutting back on spending because of increased prices and affordability concerns.”
This shows consumers are already watching what they spend ahead of rising fuel prices this winter, and are worried they will not be able to afford rising food and energy bills.
Lynda Petherick, retail lead at Accenture, told Reuters(2): “With a difficult winter to come, it will come as a worry to retailers that shoppers have already reined in their spending despite the hot summer.”
Additionally, the period of mourning that has followed the death of Queen Elizabeth II has meant fewer people have headed to the shops. Consequently, they have saved themselves money over the last couple of weeks, which will help them survive the costly winter.
If you are struggling with debt as a result of the cost of living challenges you can contact the Fresh Start UK team today.
References
- https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/august2022
- https://www.reuters.com/business/retail-consumer/uk-retail-sales-fall-august-2022-09-16/
- https://freshstartltd.com/debt-solutions/
