Christmas sales 'hit by consumer income doubts'

06/10/2009

Sales at retailers are to be squeezed over the festive season, with consumer concerns over money issues leading to restricted spending.
Begbies Traynor, a debt recovery firm, said that the number of shops experiencing serious "red flag" business problems rose by 37 per cent between August and September.

The specialists also forecast that problems would continue into the festive season, despite the fact that consumer spending is traditionally higher at this time of year.

Begbies Traynor made the comments as Brits face the consequences of the recession - with personal incomes much less secure than before.

Consumers are facing widespread job cuts, with unemployment recently reaching a 14-year high of almost 2.5 million.

Business groups predict that the jobless total will continue to rise in 2010, peaking at over three million.

Nick Hood, senior London partner at Begbies Traynor, said: "The shake-out that has already seen many thousands of shops boarded up with no prospect of being re-opened any time soon, the latest red flag figures are bad news and suggest that Christmas 2009 could see just as many retail casualties as last year."

Kevin Still, EuroDebt director, added: "On the one hand it appears that consumers are being more prudent with their disposable income, on the other hand the fallout of so many retailers suffering could lead to price increases and reduced competition. We will inevitably see the Christmas sales starting even earlier.

"For people struggling with debt and working to tight household budgets this is the time of year when careful financial management is a must. It also seems to be the time of the year that many job losses occur. EuroDebt would recommend that anyone needing debt help take professional advice before monthly outgoings exceed income if you paid all of your contractual obligations."

Tags; Current UK Economy, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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