Retail forecast sees low volumes until Q3

Verdict Research, the retail forecasting body for the clothing

& footwear market, has published highlights of the key economic factors impacting the wider retail market.

The search states volumes will remain in negative territory until recovery in Q3 2012 – this will represent a period of eight quarters of volume decline. Consumers opting for value for money over price will keep volumes low.

Falling inflation, both specifically in clothing & footwear and the overall consumer price index – will reduce some pressure on consumer wallets and should drive an improvement in volumes in H2.

Retailers, specifically high fashion and value players, will be impacted by lower levels of spending from consumers aged 16-24 due to high unemployment and increased university fees putting pressure on young shoppers’ finances.