Slow retail recovery expected as consumers reluctant to spend
Hopes of a rapid high street recovery have been thrown into doubt as consumers remain hesitant to splash out on new clothes and electronics.
According to research by the British Retail Consortium (BRC), 24 per cent of consumers said they will spend less than usual over the next month, compared to 11 per cent who said they will spend more.
61 per cent they intended to spend the same amount as usual, while four per cent preferred not to say.
The most common categories for reduced spending over the next month were fashion, small electronics, large electronics and health and beauty.
Consumers are still nervous about shopping in physical stores, although confidence has improved with the introduction of compulsory face coverings last month. In total 42 per cent of shoppers were comfortable visiting non-food stores, up from 38 per cent last week.
Meanwhile, 62 per cent of respondents were comfortable buying groceries in store, up from 56 per cent last week.
However, just 14 per cent of shoppers will visit the high street to browse, up slightly from 12 per cent at the start of July. Those that would avoid visiting stores if possible fell to 23 per cent, down from 32 per cent.
The introduction of safety measures in store has begun to pay off for retailers. 51 per cent of respondents said shops were doing enough to protect the public from coronavirus, with 13 per cent disagreeing.
BRC chief executive Helen Dickinson said: “Spending intentions remain down among UK consumers, suggesting retailers will continue to face hard times in the months ahead.
“This was particularly true for clothing and fashion, which has been particularly hit hard by the pandemic.
“Nonetheless, the public continue to be reassured by the many safety measures that have been put in place by retailers, such as perspex screens, increased hand sanitiser and regular cleaning.
“Four times as many people believe retailers are doing enough to protect the public as disagree and this has been reflected in the rise in footfall.”