Interest rate cut would give retail a much needed boost
Figures released today by FootFall, reveal a 4.2% decline in shopper numbers during March 2006 compared to the previous year, despite the boost provided by Mother’s Day.
Shopper numbers were also softened by comparison with 2005 due to the absence of the Easter school holidays and the accompanying extra shoppers.
Much cooler temperatures were recorded in March 2006 compared to the relatively mild March of last year, deterring shoppers visiting the High Street, with many people spending more time at work as the end of the financial year approached, reducing available leisure time in which to shop.
Natasha Burton, spokesperson at FootFall, comments: “Retail sales would benefit from a change in the base rate, which has remained stable at 4.5%. At the same time, increases in non-discretionary spending such as utility bills, together with slower disposable income growth and rising unemployment, have subdued consumer demand.
“Retail conditions have, however, stabilised of late according to official figures. The annual increase in volumes from December to February was unchanged on the previous three month period at 2.8%. Sales growth for this year as a whole is estimated at 2.5%, an improvement on 2005’s decade-low of 1.8%, but is nevertheless sluggish by recent historical standards,”
Retail FootFall Index (RFI) – March 2006
Month-on-month change for March (March 2006 v Feb 2006): – 0.3%
Year-on-year change for March (March 2006 v March 2005): – 4.2%
