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Retail Review - UK - June 2010
Retail Review - UK - June 2010
Consumers were disappointed by the outcome of the election, but recognise that the tough budget was inevitable.
They have been increasingly concerned about their finances for the last 18 months, apart from a brief spell over Christmas.
The VAT increase, rising interest rates and spending cuts will make life very difficult for consumers, but the biggest impact will not be felt till 2011.
Consumers most want to spend money on holidays and fashion. So these are likely to feel pressure as consumers cut back but be the first to benefit when the recovery eventually comes.
Consumers were disappointed by the outcome of the election, but recognise that the tough budget was inevitable.
They have been increasingly concerned about their finances for the last 18 months, apart from a brief spell over Christmas.
The VAT increase, rising interest rates and spending cuts will make life very difficult for consumers, but the biggest impact will not be felt till 2011.
Consumers most want to spend money on holidays and fashion. So these are likely to feel pressure as consumers cut back but be the first to benefit when the recovery eventually comes.
Leisure and fashion have supplanted the home as the prime focus for spending.
This change happened around 2006/07 during the peak of the consumer boom. It is a fundamental shift in attitudes and has not been affected by the onset of recession.

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“With consumers’ disposable incomes under constant pressure, almost half of women are mainly buying clothes which are on sale or special offer. With competition rife in the women’s fashion market, retailers need to differentiate themselves from the pack for reasons other than slashing prices, in order to maintain their margins. There is scope for retailers to focus on adding extra value to their offering ...