The British Retail Consortium said March set a record for a drop in retail sales for the UK as inflation started to squeeze households’ finances and with employment concerns consumers are cutting back. From the previous year sales measured by value fell almost 2% in part due to the date of Easter in 2010. But this is the biggest decrease since 1995 and is in contrast to a 1% increase in February.
The households across the UK are watching their spending power dry up quicker than at anytime in the past 60 years as energy and food costs soar to unheard of heights on the aftermath of wage increase restraints from the recession. Also undermining the level of consumer confidence is the increase in value added tax and the biggest government spending cuts since the Second World War that is causing the economic recovery to falter.