After October was recorded as one of the biggest consumer spending slumps since the height of the recession in 2009, the high street is experiencing a bounce back of sales in the run-up to Christmas.
After a diabolical October, the consumers came out in full force to splash their cash in November, with the CBI reporting that 39% of retailers reported a rise in sales whilst 13% saw a decline, meaning that overall, 26% of retailers saw an increase in sales in November compared to last year. In terms of December, 39% of retailers are expecting their sales to further uptick this month.
Answers to the survey were all collected by the CBI prior to the 14th November, which is relatively early in the Christmas spending period and does not take into account the popular Black Friday period at the end of the month, however, it paints a much more encouraging picture for retailers compared to what October presented as a bleak outlook.
The high street’s resurgence is even more amazing considering that CBI recorded the strongest growth in prices since 1991, with 75% of retailers increasing their prices due to a weakened pound. However, chief economist Rain Newton-Smith cautioned that “our high streets are not out of the woods”, as retailers are too nervous to employ new staff and have little optimism.
However, the UK public is expected by the Resolution Foundation to experience the longest fall in living standards since the 1950s due to a downgrade in economic growth which could last until 2020. This means that consumers on average will have less disposable income for the considerable future and will be unable to fund future substantial growth in the retail sector.
In the current uncertain climate, making sure your business or store has sufficient retail insurance is essential. To discuss a bespoke retail insurance policy for your business, then contact us on 01202 754900.