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16/06/2011

R3 responds to falling retail figures

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.”

For further information please contact:
Charlotte Towerton, R3 External Communications Officer
t: 020 7566 4203   m: 07918 161 291 e: charlotte.towerton@r3.org.uk


Notes to editors (R3):
Methodology note: ComRes interviewed 2052 GB adults online between 15th and 17th of April 2011. Data were weighted to be representative demographically of all GB adults. Where population figures are mentioned, estimates have been extrapolated using the percentages from the results and adult population figures for Great Britain available from the Office of National Statistics.


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.