Food sales fall for first time |
| Friday, 24 October 2008 | |
 Food sales volumes dropped by a record 0.1% in the three months until September, compared to the same period last year, the Office for National Statistics (ONS) has said. The figures were released as separate statistics are set to reveal that the UK is now officially in a recession. Overall retail sales dipped by 0.4% between August and September, the ONS said, meaning they were 1.8% higher than in 2007. Vicky Redwood at Capital Economics said that the figures mean that consumer confidence has now taken a knock. She said: "With house prices still falling, credit conditions tight and unemployment starting to soar, we think that consumer spending will fall sharply next year, by around 1.5%." Food sales volumes have not fallen on the barometer since the monthly survey began in 1986. Yesterday, British Retail Consortium director general Stephen Robertson said that conditions are definitely toughening for retailers and consumers following the news sales values grew by just 3% year-on-year in September. Head of retail at Ernst & Young Gavin George added: "As we enter our first recession for 16 years, it goes without saying that times will remain incredibly tough for retailers over the remainder of 2008, and probably all of 2009." Another survey this week released by Verdict has said that consumers are spending more on food, due to inflation, but are buying less of it. Are you seeing a difference? Make a comment below. Related Articles
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