Credit card lifestyles yet to return as shops suffer

18/12/2009

Bad weather and ongoing personal income worries hit high street sales in November, official figures suggest.

While economists had been anticipating a rise in sales over the course of the month, the latest data from the Office of National Statistics (ONS) shows a 0.3 per cent decline in volumes between October and November.

In particular, sales of clothing and groceries were dampened as Britons continued to move away from the credit card lifestyle of the past few decades, with the British Retail Consortium (BRC) pointing to the fact that last month's slowdown can be partly attributed to the fact that it was the wettest November on record.

However, the figures do suggest that growing numbers of Britons are regaining confidence in the economy and getting their personal finances in order.

Overall sales were up by 3.1 per cent when compared to the same month of 2008, while sales of 'big ticket items', such as white goods and other household appliances, were also found to be up.

The figures also show that overall sales in the 'no-store retailing and repair' sector on the nation's high streets were up 9.9 per cent in November when compared to the preceding month.

The BRC has said that this year's Christmas and New Year shopping period will be stronger than last year's as consumers become more confident about spending their money.

Kevin Still, director of EuroDebt, said: "I think we are seeing evidence of a divided society where those that can are reducing their debt burden and those that can't are having to use credit card for everyday expenditure with a result that debt liabilities begin to mount and become unmanageable.

"With disposable income becoming increasing squeezed by either loss of income or spiraling interest charges then a non-borrowing debt solution is required. Many people elect for a managed solution like a Debt Management Plan because they have had troubling managing the household budget and prioritising the right expenditure, like the mortgage, rent, council tax and energy bills."

Tags; Debt Management and Banking,

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