Biggest retail sales drop in three years

Year-on-year retail sales fell in October by the largest amount in three years, and for the fifth consecutive month; a further sign of the financial hardship facing many British households.

Statistics from the British Retail Consortium (BRC) showed a 2.2% year-on-year fall in sales values in October – the biggest fall since May 2005.

Stephen Robertson, director general of the British Retail Consortium, said: “The negative sales figures reflect record low consumer confidence. These are tough times for families and retailers.”

Low consumer confidence has led many consumers to reconsider their shopping activities in recent months, with increasing numbers turning to budget stores such as Aldi and Lidl in order to save money and avoid debt. While many such stores have reported higher profits than usual, a majority of leading retailers have reported falling profits.

A spokesperson for debt management company Gregory Pennington said: “This is the fifth consecutive month that retail sales have fallen and this is further evidence of the squeeze on consumer finances.

“Even though many living expenses are now decreasing, there are a lot of people still struggling with debt incurred when costs were higher – and we urge those people to seek professional debt advice.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.