22-04-2008

All sectors of retail are feeling credit crunch, says BRC

No sector in the retail industry is free from the effects of the credit crunch, The British Retail Consortium (BRC) has claimed.

"Almost every sector" of retail is currently feeling the squeeze, the consortium observed, from food to DIY, electrical to clothing. Retailers ranging from large department stores to independents are represented by the body.

Richard Dodd, head of media and campaigns with the organisation, revealed that on its last retail sales monitor there was a year-on-year fall in like-for-like sales for the first time in two years.

Explaining the possible cause of such a slide, Mr Dodd pointed to the effect that the credit crunch has had on people's disposable income.

"[It] is because people are short of spare cash and are reluctant to spend the spare cash they have got and they are confining themselves to essentials," he suggested.

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