Latest reports by the British Retail Consortium as well as an independent data compilation by the financial services company, KPMG, from most of Britain’s leading retailers, brought happy news. Unexpected higher spending by retail consumers in the month of May has left a comforting after-feel in the UK retail industry.
The annihilation of UK High Streets nears, according to the newest report. According to estimates, one in five stores in the UK would close by 2018, leaving more than 300,000 jobless. This alarming tendency, which has been already observed on High Streets, is driven by not only harsh economic conditions but also the growing popularity of online shopping.
After all, the rate of UK shop price inflation slumped significantly in April, reaching its lowest level in more than three years. The slump in UK shop price inflation was mainly driven by countless promotions and dropping commodity prices. Indeed, UK retailers have been doing whatever it takes, including price cuts, to lure customers to their stores.
UK retail sales saw a solid growth in the month of September as weather cooled down forcing Britons to buy warm clothes and shoes. According to the British Retail Consortium, year-on-year growth in British retail sales value accelerated between August and September. However British consumers are returning to shops with much attention. Yet the recent results show that there are chances that the economy is recovering slowly.