Bad news for UK retailers in latest sales reports
The past few months have not been encouraging for retailers in the United Kingdom, as sales have been less-than-stellar. The most recent data shows that sales dropped at the fastest pace in more than a year, resulting in a dismal outlook for British merchants.
PressTV reports that statistics from the Confederation of British Industry (CBI) revealed that retail sales dropped to -11 this month from -1 in April. This was much lower than analysts' expectations of a positive balance of 3, the source notes. There were several reasons given for the sharp decline, including lingering consumer hesitance from the economic recession.
"Retail sales growth has weakened since the start of the year as households continue to feel the pinch, with wages failing to keep pace with the cost of living," said Barry Williams, chair of the CBI Distributive Trades Survey Panel.
Separate research found that in 2012, shoppers in the U.K. held back on using cash for retail purchases and instead swiped their debit and credit cards both in stores and online, Financial Times reports. A study from the British Retail Consortium found that cash declined 10 percent year-over-year. This could be key for merchants looking to boost their sales. Offering point of sales solutions that provide fast and easy transactions could accommodate customers who prefer to pay with cards.
