Food and retail revenues fall as Homebase takes a hit

In a period of soaring costs and reducing disposable income, retail and food sales have tumbled in the UK.

For the first time in over 22 years food sales have fallen, alongside household and retail goods.

Household goods were particularly hit as a result of the sharp downturn in the housing market and instability, meaning that many people are shunning the likes of Homebase whose sales and shares are falling by the day.

Retail sales fell by 0.4 percent between August and September although it is predicted to get worse as consumer spending will fall by around 1.5 percent in 2009 according to Capital Economics.

Surveys conducted by the CBI and British Retail Consortium, as well as reports from individual retailers, indicate the sentiment in the business world is far weaker than these figures suggest, as the fall in retail sales was not as large as expected.

This situation is likely to continue as high food prices and rising utility bills are meaning smaller disposable incomes and wages are not rising in a period where shares and house prices are falling, resulting in consumers being very conservative with their spending.

Story link: Food and retail revenues fall as Homebase takes a hit