The bad situation of the UK's retail industry
Posted by admin on October 1, 2011
Every year on July, Britain came into the traditional sale season, all the street shop hang the sale signs to attract customers. But this year the signs have changed a little bit, many business men hang the signs are quot;suspensions for sale,quot; it shows British retail is not too good this year.
When the discount season starts this year, it has the news: the British chocolate maker Thornton announced they will close about 180 stores in the next three years, this brand has hundreds of years history, the clothing retailer TJ will close 57 shops in the UK, furniture sellers habitat is going to turn off 30 stores as well.
Although business to consumer means that they can buy big bargains in a much lower price, for instance, you just need to pay 54 pounds, you can buy a formal dress in TJ hughes, a shirt’s price is 4.99 pounds, in the habitat 29.99 pounds can buy a set of 16 head bone porcelain dish, but even they try to use a very low price to sell their product, it is still can not effectively stimulates sales, this is a big difference with the British high street shops two months ago.
It was influenced by the royal wedding and the Easter holiday, that makes the sales appear ldquo;springrdquo;, this situation promoted the British consumer’s motivation two months ago. But it did not take too long for this optimism, a large number of wedding souvenirs and catering sales even overdraw the purse from consumers in May. The British retail sales dropped 1.4%, and the seasonal adjustment for the biggest drop since January of last year. In June, consumers still continue to cut costs. According to newly released data for consumers in food and clothing, the spending of food and clothing has reduced as well, British retail sales in June has decreased to a minimum level.
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