Subscribe to The Money StopNews Feed

Browse > Home / News, News-Credit-Cards / High street to suffer as consumers try and save money

High street to suffer as consumers try and save money

December 23, 2008 by admin  
Filed under News, News-Credit-Cards

Leave a Comment

Although Christmas is just around the corner many High Street retailers are not getting too excited about the flurry of activity and more importantly the huge profits that will come rolling in, namely because this is something that is unlikely to happen this year. After a particularly gruelling year in terms of finances, with soaring living costs, rocketing bills, and sky high borrowing costs to deal with, many consumers are desperate to try and put some money aside, and to do this many will have to cut back on the cost of Christmas, and reduce the amount of money that they spend on presents, food, going out, clothes, and entertainment.

Although the Bank of England has slashed the interest rate to 3% many lenders will not be passing the rate cut on until the start of December, and some may not pass the rate cut on at all.

With this in mind consumers will have little time to get back onto an even financial footing in time to spend for Christmas, and industry experts have said that retailers are facing their bleakest year for some time, with around 50 percent of families expected to cut back on their expenditure this year.

In fact, retailers are so concerned that many have slashed prices already in the run up to Christmas, with big name retailers such as Debenhams, House of Fraser, and Marks and Spencer slashing the price on clothes, household goods, and gifts by 50 percent or more in some cases.

This is to try and entice customers and boost spending levels over the Christmas period, which traditionally sees profits rolling in for retailers.

One industry official said: ‘Now is the time that households have to stop spending and start saving. And this could mean that economic activity contracts even more than it is doing at the moment. Households will have to devote more of their money to rebuilding their personal finances rather than spending it on consumer goods.’

Tags: bank of england, Electronic commerce, Christmas spending, base rate, name, year, food, run

Tags:

Related Entries

  • Record deposits in banks for April
    • According to recent reports April saw consumers in the UK deposit record savings in high street banks, with many rushing to take advantage of higher returns on deposits. Reports show that there was a surge
  • Will you be shopping or saving this Christmas?
    • The turmoil that has hit the financial markets over the past year have affected many of us in a number of ways, and tighter credit conditions coupled with soaring inflation, rocketing bills and petrol costs,
  • Current accounts help poor save money, union says
    • Current accounts are the safest way for those on low incomes to save money, credit unions said today.ABCUL, the main trade association for the unions, said that these accounts also give lower-income customers access to
  • Dixons tries new tactic to beat retail rivals
    • High Street retail giant Dixon's has decided to try a new tactic when it comes to beating rival retailers in the run up to Christmas. The retail giant has realised that whilst consumers want to
  • Improvement in High Street sales seen in June
    • According to recently released figures June saw an improvement in High Street sales levels, partly fuelled by consumers heading out to buy new clothes following the short but significant heat wave seen during that period.
  • Bank account options for consumers
    • Although the banking industry in the UK has taken quite a bit of flack over recent years the various High Street banks do offer plenty of choice when it comes to bank accounts to suit
  • Mortgage borrowers can get help with energy costs
    • These days mortgage loans are far more restricted than they were prior to the global financial crisis, and many people who want to get a loan for a property find themselves being refused, as lender
  • Consumers are unlikely to switch accounts unless “they suffer”
    • Despite an awareness of the benefits of switching bank accounts, consumers are reluctant to take advantage of what this move will bring, one financial expert has claimed.According to moneysupermarket.com, the majority of providers in the

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!