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Press Release

R3 responds to falling retail figures

17 June 2011

Against a backdrop of increased living costs and falling incomes (from inflationary pressures and frozen pay) it is unsurprising that retail has suffered a 1.4% drop in sales.

R3, the insolvency trade body's, research reveals 84% of individuals in Great Britain have made changes to their spending habits in the last year. Over half of people (51%) have bought fewer non-essential items, such as clothes and DVDs and 47% have started to shop around before buying goods.

Less common changes included people setting a budget to control their spending when they previously hadn't (19%) and starting to shop in supermarkets rather than independent shops (16%).

Frances Coulson, R3 President comments:

"A considerable number of people are actively trying to lower their expenditure. At this time of uncertainty it appears that the nation's natural response has been to tread with caution and cut back where possible, this includes when shopping on the high street."

The first port of call for many people seems to have been reducing their expenditure on non-essentials, whether this be cutting them out completely or switching to supermarkets, offering similar products at lower prices."

R3's personal debt snapshot revealed one in ten (10%) people worry about being made redundant which may also explain individuals curtailing their expenditure.

Coulson continues:

"Many anticipated 2011 to be a tough year for the retail sector; the economic recovery is currently very sluggish and a sector dependent on consumer spend was always going to face difficulties. Retail suffered heavily during the recession, and many of the businesses that survived will have drawn heavily on their reserves to do so. A drop in sales may be a hurdle too far for some struggling businesses."



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R3 The Insolvency Trade Body

R3 The Insolvency Trade Body

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