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UK retailers face decade of gloom
Business digest: Consumers too busy paying off debts to spend money in shops, says think tank
British retailers face a decade of gloom as household disposable income shrinks, the economics think tank the Ernst & Young Item Club has warned.
With the economy only likely to record modest growth over the next two years, 5 per cent inflation expected in the short-term and consumers concentrating on paying off debts, retailers will suffer from falling spending.
The think tank predicts that consumer spending won't top pre-recession levels until 2013, and that for a further seven years there will be muted growth.
The few retail sectors that can expect to benefit from this squeeze will be those related to home entertainment such as electrical retailers and supermarkets.
Read a full report at the Guardian. ·
