Since June 2016 consumer spending in United Kingdom has dropped drastically, this has led to falls in share price and a number of high street stores have released profit warnings. Carpetright has stated that after the adjustment for inflation consumer’s have spent about a per cent less in the month of December than a month prior to it.
A profit warning has been released by carpetright where almost every customer spent around four hundred euro’s per purchase. They have heard bad news about from about every store that specialises in Big Ticket Items. Being the closest strength to the housing market of United Kingdom, have experienced and indicated recession at an early stage.
Many garment retailer’s like Moss Bros are hearing profit warnings and John Lewis a departmental store chain, even after analysing weekly sales have revealed the yearly decline in sales figure’s specially on the home ware business.
Many companies are now drawn into a war of prices in order to increase sales that would help in rising profits. Hence, the product prices are continuously falling down below the market value.
A number of economists have started to feel that soon the era of Dire Trading would come to full-fledged existence. However, it is not yet over some studies have indicated that level’s of employment have improved that has come as a hope to many retailer’s but it is extremely difficult to say whether it would bring in the disposable income that is required or not