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UK shoppers rein in spending despite sales as cost of living crisis takes toll

British consumers sharply cut their spending in January as the cost of living crisis damaged household finances, retailers have warned, amid growing concern over the impact of high inflation on the economy.

UK shoppers rein in spending despite sales as cost of living crisis takes toll
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  • Shared from The Guardian
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  • February 08, 2023
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  • 1 minute read
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The British Retail Consortium (BRC) said sales growth slowed last month despite retailers offering steep discounts in the January sales, with households reining in their spending in the face of soaring costs for energy, food and other basic essentials.

Total sales rose by 4.2% in January compared with a year earlier, down from December’s annual growth rate of 6.9%. The BRC said much of the rise was a result of high inflation pushing up the value of goods being sold, masking weaker sales volumes.

“As Christmas cheer subsided, retailers felt the January blues as sales growth slowed,” said Helen Dickinson, the chief executive of the BRC.

“Many retailers discounted heavily to entice consumer spend, and while there were bargains to be had in the January sales, retailers continue to be hit by lower margins and falling volumes. Own-brand ranges remain popular across food and non-food products, and big-ticket items are seeing customers trade down.”

The bleak consumer outlook was underlined on Monday with the news that all 170 of M&Co stores will close with the loss of 1,900 jobs after the Scottish retailer fell into administration before Christmas.

Read more at The Guardian

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