Shoppers keep a tight hold of purse strings

Shoppers have continued to keep their spending in check despite recent signs of hope for the UK economy, the British Retail Consortium warned today.

The trade body’s February sales monitor showed that the like-for-like value of business was down 0.3 per cent year-on-year.

Total sales, which include new stores, were up 2.3 per cent but, with inflation at 3.6 per cent in January, this still shows customers are still buying less than a year ago.

Stephen Robertson, BRC director-general, said there was no sign of a convincing revival for shops. He said: “Unemployment is expected to rise further, causing increased nervousness about job security, which is keeping confidence fragile. Any sense of improving optimism is not yet translating into more spending.”

Online sales continued to grow faster than those on the high street.