Consumer Spending Down

Fashion spending has stalled and the high street has effectively gone on sale, although retailers are still hoping that good weather will come to their rescue.

One young fashion retailer said: It has been more difficult in recent weeks than it was before Easter. Only the last couple of days have put us into positive like-for-like sales." He attributed the slowdown to the increase in NI contributions and the lack of new trends. The flat trading picture has prompted many retailers to stage promotions that are, in effect, early sales.

Tesco is offering 20 per cent off all clothing this week, while M&S offered 20 per cent off womenswear and homewares over the Bank Holiday. Debenhams has followed up a one-day "mega day" a fortnight ago with an offer of GBP 10 worth of vouchers when customers spend GBP 50. House of Fraser last week staged a "one-day spectacular" offering 25 per cent off. One brand predicted department stores would run promotions through June while going on full Sale two weeks earlier than normal in July.

Last week a report by National Statistics revealed that sales of clothing and footwear in April had grown by only 1 per cent against last year.