Monday 3 October 2022

Retailers Have Stocked Up On Festive Goodies, But Will Anyone Buy Them?

Retailers were already feeling nervous before Liz Truss and Kwasi Kwarteng launched their mini-budget for growth – and sent the pound into freefall and mortgage rates soaring.

The industry may have bought its stock for the peak trading season, so the fall in the value of the pound will not affect prices or profits until next year.

The main short-term concern before Christmas, when most consumer industries make the majority of their profits, will be consumer sentiment and spending power.

Read the full article on The Guardian website

NamNews Implications:
  • Taking some of the pressures on consumers:
    • Mini-budget fiasco sending pound into freefall and mortgage rates soaring.
    • A pause in house sales
    • Domestic renters in fear of rent increases
    • Benefit cuts
    • Spending on expensive items down
    • Skipping the little extras
    • Trading down to supermarket own label or discounters
    • Spare cash left after paying for essentials plummeted 10% in August for the average family
    • Outstanding net credit card debt has risen on average by 0.9% per month since the start of the year (No one appears to be mentioning authorised and unauthorised overdrafts at 40%...)
    • Autumn long-feared energy bills hit doormats
    • Clothing, homewares, nights out and trips away must all be on the list of household budget cuts
    • A general feeling of economic malaise and fear about the future
  • Fancy some Christmas shopping...?
#HouseholdCutBacks #MiniBudget #FallingDemand #ChristmasShopping

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