UK see's surprise fall in retail spending

Graham_Devon

UK retail sales fell by more than expected in October as shoppers cut back on food and clothing purchases, official data shows.

The Office for National Statistics said sales volumes fell 0.8% last month, having risen by 0.5% in September.

Food stores reported the biggest monthly decline in sales since November 2011.

Compared with a year earlier, retail sales were up 0.6%, although this was also below analysts' forecasts.

Analysts had expected a fall in October of about 0.2%, and the steeper decline may add to worries about economic growth following Wednesday's Bank of England warning about the UK recovery.

In October, sales of clothes and shoes fell 2.3% on the month. Food stores reported the biggest monthly decline in sales since November 2011, the ONS.

The thing that stands out to me is that it's food that's been cut back on. Being blamed on rising inflation.

http://www.bbc.co.uk/news/business-20337773

Thrugelmir

Graham_Devon wrote: »

The thing that stands out to me is that it's food that's been cut back on. Being blamed on rising inflation.

I buy a lot of day to day items in the new Aldi rather than Tesco's as its cheaper. So decline in total sales is misleading. As I still buy the same items. Just spend less.

Given the popularity of the shop since it opened. Many feel the same.

GeorgeHowell

Graham_Devon wrote: »

The thing that stands out to me is that it's food that's been cut back on. Being blamed on rising inflation.

http://www.bbc.co.uk/news/business-20337773

Many people waste and throw away staggering amounts of food, so perhaps some are being a bit more canny with it. Wouldn't do a lot of them any harm to eat less either.

andyroberts1967

Britain is now the fat man of Europe, with one in four men classed as obese. I agree that cutting down wouldn't do a lot of people harm. Maybe people are getting the message and buying less.

grizzly1911

Thrugelmir wrote: »

I buy a lot of day to day items in the new Aldi rather than Tesco's as its cheaper. So decline in total sales is misleading. As I still buy the same items. Just spend less.

Given the popularity of the shop since it opened. Many feel the same.

A good example Thrug, or people will trade down in Tescos.

We have had a "new Aldi" in a nice relitavely well off area. I was an early convert. It has been interersting to watch the volume of business increase and the mix of shoppers over the years.

I am sure they are making an impact as you say.

Underneath them the "pound shops" are also chipping away with non perishable grocery items too.

coastline

Can anyone tell me how much items are in supermarkets these days because basically everytime I go in they're...well all over the shop..;)

shortchanged_2

UK see's surprise fall in retail spending

Well it wasn't a surprise to me.
Basically many people in the UK continue to be worse off even if inflation is starting to come down because average pay rises are are still lower than inflation therefore the longer this continues the worse off people get.It's common sense really.

wotsthat

shortchanged wrote: »

UK see's surprise fall in retail spending

Well it wasn't a surprise to me.
Basically many people in the UK continue to be worse off even if inflation is starting to come down because average pay rises are are still lower than inflation therefore the longer this continues the worse off people get.It's common sense really.

So the ONS figures need to be taken with a pinch of salt or considered a smokescreen if they're related to falling employment but they're perfectly credible if they show falling retail spending?

grizzly1911

wotsthat wrote: »

So the ONS figures need to be taken with a pinch of salt or considered a smokescreen if they're related to falling employment but they're perfectly credible if they show falling retail spending?

Perhaps one is more credible than the other.

Retail sales are provided by retailers and unemployment data is submitted by a governement department with a political agenda.

People know things are costing more in the shops and are having to tighten their belts to make the money stretch.

Widescale job availability and improved prospects aren't so visible. The switch from good full time work to poorer paid part time in the mix is also a big factor undermining confidence.

wotsthat

grizzly1911 wrote: »

Perhaps one is more credible than the other.

Retail sales are provided by retailers and unemployment data is submitted by a governement department with a political agenda.

Unemployment data is collated from a survey of private households, student accomodation and NHS residences.

No less robust than the sampling used for retail sales.

Thrugelmir

grizzly1911 wrote: »

A good example Thrug, or people will trade down in Tescos.

We have had a "new Aldi" in a nice relitavely well off area. I was an early convert. It has been interersting to watch the volume of business increase and the mix of shoppers over the years.

I am sure they are making an impact as you say.

Underneath them the "pound shops" are also chipping away with non perishable grocery items too.

Aldi are very clever. As sell predominately British produced produce. So haven't alienated the Uk consumer. While of course being a well known chain in Europe.