The British Retail
Consortium (BRC) released its Like-For-Like Retail Sales report, which measures
changes in the actual value of retail sales from participating companies with
invaluable management information on a regular and reliable basis. For May this
report showed retail sales dropped by 2.7 percent, which is the biggest drop
since 1995.
This drop can be
explained, in part, by the fact that last year the UK saw lots of sunshine
around this period, the World Cup was on and the royal wedding gave everyone
something to cheer about, giving people more incentives to spend. The picture
this year, however, is much different. The outcome of Brexit is still unsure
and economic growth is sluggish. Online sales are also seen to be at an
all-time low at 1.5 percent and sales of non-food items in stores also dropped
by 2.7 percent.
Commenting on the
extreme drop in retail sales, the Chief Executive of BRC, Helen Dickinson said
“with the biggest decline in retail
sales on record, the risk of further job losses and store closures will only
increase.” She also added that “with retail
conditions the toughest they have been for a decade, politicians must act to
support the successful reinvention of our high streets and local communities.”
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