Home / Knowledge / News / Apparel/Garments / Consumer confidence is weak
Consumer confidence is weak
May '10
Like-for-like sales in April were 2.0% lower than in April 2009, when they had risen 4.3%, boosted then by Easter falling in April 2009 but March 2008. The April trading period included only Easter Sunday and Monday this year, but all of Easter in 2009. Total sales in April were 0.7% up on a year ago, when Easter had boosted growth to 8.2%.

Easter distortions and consumer caution meant like-for-like sales performance was the weakest since March 2000 and total sales growth the worst since April 1999.

Non-food sales fell back, hit by consumer caution and pre-election uncertainty. Clothing and footwear, homewares and furniture all suffered, with discretionary items worst affected.

Like-for-like sales fell less than they did in the UK, but they had picked up less in March. UK sales were 2.3% lower than in April 2009, when they had risen 4.6%. Fragile consumer confidence in Scotland, especially about public sector job cuts, made shoppers cautious about spending.

Richard Dodd, Scottish Retail Consortium Head of Media, said:
"This was the worst total sales growth figure since April 1999 but it's nowhere near as bad as it looks. Customers' reluctance to spend in the face of economic and political uncertainty is a factor but the main explanation is the timing of Easter.

This year's earlier Easter meant much of the spending resulting from it fell into March, undermining April's figures. The Easter boost to March's figures was less pronounced in Scotland so the slowdown in growth from March to April was less severe than other parts of the UK.

“Consumer confidence is weak. Customers are worried about jobs, the economy and prospects for their own finances but fundamentally they are happier to spend than this time last year. The Easter effect is only temporary. May's growth is likely to bounce back but emerging news about Government tax plans will influence by how much.”

David McCorquodale, Head of Retail in Scotland, KPMG, said:
“Spending over the Easter weekend is vital to retailers. But in 2010, half the Easter weekend fell in the March trading period and half in April's, whilst in 2009 all of the Easter sales were in April, so the decline in like-for-like sales is exaggerated. That said, looking at the three-month weighted average gives a clearer picture and shows a decline of 0.7% for the three months to April 2010 – the biggest such decline since March 2006.

“Uncertainty and lack of confidence were key to consumer behaviour in the lead up to the General Election and this is likely to persist for a while. Both consumers and retailers are eagerly waiting to hear what tax changes will be announced in the forthcoming Budget. If the rumours of a rise in VAT are true, this is likely to have an impact as the public looks to buy larger items ahead of the application of any increase. Better weather could also have a beneficial effect as summer fashions can finally leave the shelf and be worn with confidence!”

Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Top executives
Textile industry, India

The event should be organised every year

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search