Category Archives: Consumer spending

Frasers Group sales fall amid ‘challenging’ luxury market and retreat from gaming

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Pre-tax profits fall 24% despite rise in Sports Direct sales, driven by closures of House of Fraser and Game stores

A “challenging” luxury market and retreat from gaming have prompted a fall in sales and profits at Mike Ashley’s Frasers.

The group, which is majority owned by the billionaire former Newcastle United owner, said sales fell by 7.4% to £4.7bn and pre-tax profits slid by 24% to £379.5m as it closed some of its House of Fraser department stores and Game video game shops.

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‘Welcome green shoots’: warm March weather gives 1.1% lift to UK retail sales

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Spring sunshine boosted spending on gardening, DIY and food products, but households are still ‘prudently budgeting’ as bills rise

Warm weather in March helped give a lift to retailers despite a late Easter, with sales of gardening, DIY, food, and health and beauty products getting a boost from the spring sunshine.

Purchases for Mother’s Day also helped retail sales climb 1.1% last month, according to a British Retail Consortium-KPMG survey, keeping pace with February despite trading against a much stronger period a year before and a downturn in visitor numbers on high streets and in retail parks as more sales shifted online.

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Exclusive: 20% of Americans support boycott of firms aligning themselves with Trump agenda

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New poll also shows that a significant share of Americans will avoid companies that drop social-inclusion policies

One in five Americans plan to turn their backs for good on companies that have shifted their policies to align with Donald Trump’s agenda, according to a new poll for the Guardian.

As high-profile brands including Amazon, Target and Tesla grapple with economic boycotts, research by the Harris Poll indicated the backlash could have a lasting impact.

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UK hiring on the rise as confidence lifts, research suggests

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Companies increase hiring for first time since June, and households more optimistic about their finances

Companies have ramped up hiring in recent weeks while consumer confidence has started to rise, research suggests, in a boost for Rachel Reeves as the government looks for signs of economic growth.

The chancellor has received a fillip after the market research company GfK’s consumer index improved from -22 in January to -20 in February as households said they were more optimistic about their personal finances and the economic outlook.

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US gas prices likely to go up with Trump tariffs on Canadian and Mexican oil

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Tariffs on imports mean higher costs for finishing fuels, much of which is likely to be passed on to consumers

US consumers will see higher prices at the gas pump from Donald Trump’s decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders.

The likely hike in fuel prices reflects the double-edged nature of Trump’s trade protections, which are designed to bolster domestic business and pressure US neighbors to curb illegal immigration and drug smuggling, but which will also run counter to his promises to tackle inflation.

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Boxing Day sales: crowds flock to stores around Australia in search of bargains

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Shoppers expected to splurge on homewares and beauty products, with retail spending projected to top $1.3bn on Boxing Day

Shoppers have flooded stores to make the most of Boxing Day bargains.

Australians are projected to spend $1.3bn on Boxing Day and a further $2.4bn during the last days of December, Australian Retailers Association and Roy Morgan research shows.

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EU launches action against shopping website Temu over illegal products

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Formal investigation opens amid concerns Chinese shopping website is breaching Digital Services Act

The EU has launched formal proceedings against the Chinese shopping website Temu amid concerns it is failing to halt the sale of illegal products online.

A formal investigation was opened on Thursday with the European Commission citing concerns over the platform, which is a cut-price rival to Amazon.

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Falling UK inflation not leading to rise in spending, report finds

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May recorded the lowest spending growth since February 2021, Barclays’ snapshot of card activity shows

Consumer spending growth is at its weakest in more than three years as higher council tax bills and the rising cost of broadband and mobile phones eat into household budgets, a report has said.

The monthly snapshot of credit and debit card activity from Barclays found an improvement in consumer confidence as a result of falling inflation was not leading to a pickup in spending.

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Littler India: why Britain’s south Asian garment stores are struggling

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They have been resilient amid wider high street decline – but units are now emptying in areas such as Southall, west London

The south Asian high street is facing a fight for its future in Britain as customers scale back wedding celebrations because of the cost of living crisis and young people’s changing preferences.

Businesses in London and Manchester have said they have witnessed a huge decline in customers after the pandemic with the cost of living crisis prompting many to decide against the traditional big south Asian wedding and to seek out cheaper products online.

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Next cheers retail sector with bumper profits and talk of falling prices

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Shares hit new high as chain says consumer backdrop is improving and ‘feels like it is now entering a new era’

Next said the prices it charges customers are falling this year, as the fashion and homeware retailer reported bumper profits and said the UK consumer backdrop was improving.

Simon Wolfson, the group’s chief executive, said that it had been “a long time” since the group had started a financial year in such a positive frame of mind after the positive sales and growth results for the year to January.

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Britons cut back on dining out and buying clothes, Barclays reveals

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Annual card spending report says consumers are prioritising travel and nights out and buying value-range groceries amid cost of living crisis

Hard-pressed consumers cut back on eating out and buying new clothes to prioritise spending on travel, entertainment and a visit to the pub over the past year, as soaring inflation and rising bills sharply curtailed the rate of spending growth.

Consumer card spending increased by 4.1% year-on-year in 2023, almost two-thirds lower than the 10.6% rise in 2022, as the sharp increase in the cost of living took its toll on households.

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Boxing Day footfall rises but number of shoppers is well down on pre-Covid levels

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Weaker Christmas spending amid cost of living crisis and fewer shops opening cut visitor numbers by 30% on 2019

Retailers have recorded a small pickup in Boxing Day footfall, but visits to stores remained well below pre-pandemic levels as several high street chains stayed shut.

Retailers have been braced for weak spending over the Christmas period as the UK economy stagnates amid the cost of living crisis.

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UK Christmas shoppers will pay more for less this year, say economists

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Cost of festive season is up almost a quarter in three years, according to the Centre for Economics and Business Research

Consumers will pay more for less this Christmas, economists have warned, getting less of a bang for their buck than the faint phutting of a puny, overpriced cracker being pulled.

Although Britons will spend more than in the belt-tightening 2022 festive season, the resultant fare won’t yet match the pre-pandemic Christmases past.

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John Lewis to partner with Randox Health to open clinics in stores

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In effort to attract customers amid falling sales, retailer joins forces with Covid testing firm to offer full-body health checks

John Lewis is to team up with Covid testing firm Randox Health to open clinics within its shops in the latest effort to draw in customers amid tough trading conditions.

The clinics, which will be run by Randox staff, will offer full-body health checks including tests for vitamin deficiencies, hormone imbalances and key health concerns, among other services.

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AI Pictionary and a ‘robo-dog’ make UK shops’ hottest Christmas toy lists

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Retailers hope new version of top-selling board game plus Dog-E will help fuel festive sales recovery

A new version of Pictionary that pits artist against artificial intelligence and a pet “robo-dog” with a wagging tail are among the toys destined to appear on Christmas lists this year as retailers pray for better sales during the key festive trading period.

With the cost of living crisis looming large over another year’s celebrations, the Toy Retailers Association’s annual DreamToys list of the 20 “hottest” gifts includes a dozen that are under £50. Among them is Pictionary vs AI (£24), a new version of the classic board game that pitches (terrible) human sketches against the might of AI processing power.

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UK recession fears grow as shoppers cut spending ‘to save for Christmas’

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Drop in retail sales also because of consumer worries over high energy bills and mortgages, surveys suggest

Fears that the UK is heading for a recession this winter have intensified amid signs Britain’s hard-pressed households are cutting spending as they save for Christmas and higher fuel bills.

Two monthly snapshots of retail activity found shops and online outlets struggling because of consumer budgets being squeezed by dearer mortgages and the UK’s lingering cost of living crisis.

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UK retailers forced to slash prices after July washout and interest rate rise

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British Retail Consortium and KPMG report shows steep annual drop in volume of sales and a rise in promotional offers

Britain’s hard-pressed retailers are being forced to slash their prices to drum up business after dismal summer weather and ever-higher interest rates combined to depress consumer spending in July.

The monthly health check of high street and online spending patterns from the British Retail Consortium and the consultancy KPMG reported a steep annual drop in the volume of sales and an increasing number of retailers offering promotional offers to woo consumers reluctant to part with their cash.

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Almost 50 UK shops closed for good every day in 2022, says report

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Centre for Retail Research says 17,145 stores shut in total, up almost 50% on 2021, during pandemic

Last year was a “brutal” one for Britain’s retail sector, with more shops shutting down than at any other point in the last five years, and 2023 will be similarly challenging, according to industry groups.

About 47 shops on average pulled down their shutters for the final time every day last year, according to analysis from the Centre for Retail Research (CRR). It found a total of 17,145 shops on high streets and in other locations closed for good over 2022. This is up almost 50% on the 11,449 shops closed in 2021, during the Covid pandemic.

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More than a third of UK hospitality firms ‘could go bust by next year’

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Pubs, restaurants and hotels threatened by energy bills and food price inflation, survey finds

More than a third of UK hospitality businesses, including pubs, restaurants and hotels, could go bust by early next year as energy bills surge and bookings fall, according to a new survey.

With nearly all businesses saying they face higher energy costs and food price inflation, 35% of respondents to a quarterly hospitality industry survey said they expected to be operating at a loss or to be unable to continue trading by the end of the year.

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Biggest interest rate rise for 25 years could spell showdown at the Bank

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This week’s decision could pit Bank of England governor Andrew Bailey against an expansionary PM and chancellor

A lightning strike from the Bank of England awaits. Having delayed its decision until after the period of national mourning for the death of the Queen, Threadneedle Street could this week launch the biggest rise in borrowing costs for at least 25 years.

Announcing its plans a day before Kwasi Kwarteng’s mini-budget on Friday, the central bank is widely expected to use a fast and forceful rate increase to show its commitment to tackling soaring borrowing costs – despite the gathering storm clouds for the British economy.

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