High street sales have dropped for the fourth month in a row, forcing retailers to take desperate measures to attract increasingly cash-strapped consumers.
Sales fell by 1.5% from September, the Retail Sales Monitor by the British Retail Consortium (BRC) found.
Sales have now been lower than a year ago in six of the past seven months – the worst since summer 2005, the organisation said.
Despite the drop, the food and drink industry saw a ‘significant’ upsurge in sales – compared with the clothing and footwear and furniture sectors, which were well down on a year ago.
The BRC blamed the fall on recent economic turmoil, which it said had hit consumer confidence. It also said inflation, which rose to 5.2% today, had meant shoppers are tightening their belts and planning spending more carefully.
Stephen Robertson, the organisation’s director general, said the retailers will be looking to Christmas to recoup their losses.
“The financial turmoil has further undermined consumer confidence with like-for-like sales now down in six of the last seven months.
“Impulse buying is disappearing as people consider purchases carefully and actively seek out promotions. If you’re after a bargain it’s great news as shops have responded with some of the most dramatic discounts and offers in recent times,” he said.
© Crimson Business Ltd. 2008