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17/11/2011

R3 comments on latest retail figures

“The pick-up in retail sales is unsurprising given that we are now in the run-up to Christmas. The next few months are a crucial period for retailers to build up their reserves before the New Year when consumers will curtail their spending once again. This year many retail businesses entered administration following June’s quarter day as consumers spent the first half of 2011 paying off their Christmas debts.

“Shoppers are likely to have started on their Christmas list early this year to make allowances for the higher costs of living, in particular the hike in energy prices which will squeeze households even further in the coming months. It is a good idea for consumers to even out their Christmas spending over several pay packets to avoid any unexpected outgoings tipping them into insolvency or resorting to short term lending solutions. R3’s latest Personal Debt snapshot revealed over four in ten (44%) people struggle to payday, whilst one in ten (11%) take out a ‘payday loans’ to make ends meet at the end of each month. Individuals turning to short-term loans and credit cards to fund Christmas should be wary of the high interest rates that often accompany these products. Debt can quickly snowball out of control.

“These figures offer encouraging signs but we should be wary of complacency. Things are far from being back to normal on the high street. The difficult international situation, the government's austerity measures, high inflation and stagnant wages will continue to put pressure on businesses and consumers. The festive season could be one of the toughest yet for retailers.”

Frances Coulson, R3 President

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 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.