So August saw retail sales “unexpectedly” drop. For sure the latest figures are out of kilter with the rest of the good news that is starting to emerge about our economy - but why is this a surprise?
The consumer is not getting richer. Disposable incomes continue to be squeezed through pay rises not keeping pace with inflation. There is still no appetite to live off our “flexible friends”. Job security remains a concern.
Smart retailers are aware of this. Smart retailers are still trading hard. Smart retailers are still controlling their costs.
Smart retailers are not surprised by the these figures!
Paul Williams is a Consultant in the Retail Practice