Uk Spending Power In Heavy Fall

[Moo]

http://news.bbc.co.uk/1/hi/business/7488613.stm

We're not spending,

We're not spending,

We're not spending anymore.

Bit of a "Gran, I've bought you a book on egg-sucking" article, but hey, it's Friday.

[we the sheeple]

Add this one into the mix.

Looks like the middle class sheeple are rapidly paying attention to their spending habits.

http://www.independent.co.uk/news/business...all-860113.html

John Lewis reports sharp sales fall

By Matt Dickinson, PA

Friday, 4 July 2008

Department store chain John Lewis today said its out-of-town stores suffered most in a sharp sales fall last week.

The group said sales fell 8.3 per cent during the week to June 28 compared to prior year, led by hefty declines for home and electrical goods.

In a signal that rising fuel costs were also having an impact on trade, John Lewis said its out-of-town stores - such as Bluewater in Kent and Brent Cross in North London - fared the worst in terms of sales.

Bluewater's sales dropped nearly 25 per cent during the week, with Brent Cross posting a 17% decline.

"There is no doubt that trade in our shops proved challenging when compared to exceptional results last year," commercial director Phil Hullah said.

Edited July 4, 2008 by hogwash

[thecrashingisles]

http://www.independent.co.uk/news/business...all-860113.html

John Lewis reports sharp sales fall

Who says MPs aren't doing anything about this crisis? They're heroically trying to keep John Lewis's sales figures up (with our money) but all they get is abuse!

[Jadoube]

"There is no doubt that trade in our shops proved challenging when compared to exceptional results last year," John Lewis commercial director Phil Hullah said.

Basically JL are saying overall they sold 8% less last weekend. If a biggie like Bluewater dropped 25% then to give the chain average of 8% some of the other storess have hardly dropped at all. They're saying the drop was more in centres where the customer had to make a specific trip to a destination that relies on a large catchment with a long travel time. They're saying the drop was less in high streets or centres that are closer to customers and/or where customers might have gone to the centre for other reasons as well.

One week. A week when the roads were quiet on my commute (folk off on holiday) it was hot and sunny (fancy a long drive on the M'way with the windows closed?) and Wimbledon was on.

OK, I admit I'm being pedantic when I can't get too excited about this. Its an interesting statistic. It gives support to other indicators. And clearly JL think its relevant to mention, for whatever reason. So when they report a 8% drop in takings for the quarter or half year, or if ALL the stores in Bluewater report a drop of 25% the same week......then I'll be excited.

[nohpc]

deflation here we come?

[Leonard Hatred]

I thought that rocketing house prices in the last 5 years had made us all rich?

I guess not. Yet more proof that everything that comes out of the mouths of "experts" is complete ********

[blankster]

What I find surprising is that in my daily life nobody seems to think that things are getting bad - perhaps just that money is a bit tighter because of higher food and fuel prices, that's all. Oh, not quite true - I know someone who owns a business (not connected with property) and they think the outlook is very bleak.

Edited July 4, 2008 by blankster

[Moo]

What I find surprising is that in my daily life nobody seems to think that things are getting bad - perhaps just that money is a bit tighter because of higher food and fuel prices, that's all. Oh, not quite true - I know someone who owns a business (not connected with property) and they think the outlook is very bleak.

The way I look at it is pretty much...

A lot of the "spending less" is actually going to be pretty subconscious. When you consider petrol rises, it's unlikely that most people are more than a tenner out of pocket per week which, for someone on a moderate income, isn't anything like the end of the world. However, that's £40 they're not spending elsewhere. The same goes for the food. The price rises aren't even remotely terrifying, but when all is said and done there's a few quid here and there just not going back into the rest of their spending. The economising might not be anything spectacular - skipping the Starbucks in town, or maybe having one less evening out per month, but it can mount up surprisingly quickly. Also, clearly the effect of one punter skipping Starbucks every other weekend isn't going to be noticed, but when half the customers do, that's a massive drop off in sales for the shop, from what, on the face of it, is a few hundred people saving a tenner here and there.

Also, there's the "not feeling quite so confident" cuts, which are made not because people can't afford whatever it is they were going to buy, but maybe "delay" the decision a bit to see how things pan out. Now's the sort of time where small business directors might put off buying the new car this year, just to see how it goes, or maybe decide to wait a while before buying those new PCs they feel they need, or that new machine for shop.

[barsark]

What I find surprising is that in my daily life nobody seems to think that things are getting bad - perhaps just that money is a bit tighter because of higher food and fuel prices, that's all. Oh, not quite true - I know someone who owns a business (not connected with property) and they think the outlook is very bleak.

Just made a comment similar to this in the thread about redundancies.

People, a month ago were saying to me, "no it's ok" and suddenly, they are all worried for their jobs. The change is happening and very, very quickly. It all depends what industry you are in and you personal situation. I am in the property industry and therefore am seeing the shocks now.

[Nicholas Cage]

Spare Cash isn't falling because of high oil and food prices, it's been going this way for the last 6+ years.

The current inflation in those items will just push it over the edge. Council Tax, Housing costs, Income Tax and replacing the failing government with private pensions, education and healthcare.