Retail Business In Midsummer

Every year from January to July, Britain When they enter the traditional discount season, the street shops will hang out the red "white" price to attract customers. But this year, many businessmen have put out another big sign: "stop selling and sell." Behind these words, the whole British retail industry is going through a severe cold.

　　
Thornton, a veteran British chocolate maker with a history of over 100 years, has announced that he will close about 180 stores in 3 years. Clothing retailer TJ Hughes plans to close 57 chain stores, and furniture seller eBay will cut 30 pavements. This series of news came at the beginning of the discount season.

　　
Although for consumers, closing sales means a lot of cheap goods can be picked up, for example, in the sale of TJ Hughes can buy 54 pounds. Formal wear 4.99 pounds a piece. shirt 。 AI Bi Ju also sold 29.99 pounds, a set of 16 bone porcelain plates, which are much cheaper than usual. But even so, "clearance price" still can not effectively stimulate sales, which is compared with the situation of high street shops selling vigorously two months ago.

　　
Britain's consumer confidence was once "small spring" in April, thanks to the promotion of the royal wedding and Easter holidays. But this optimism did not last long, and even a large number of wedding souvenirs and catering sales were overdrawn by consumers' wallets. In May, the retail sales rate fell 1.4% in January 2010, the biggest drop since January 2010. In June, consumer spending continued. The latest figures released by the British Federation of industry showed that in June, the retail sales index (CBI) dropped from 18 in May to -2, the lowest level in a year.

　　
This is the latest blow to the retail industry in the UK. The overall downturn in the retail industry has continued from 2008 to 2009. The retail industry has created more than 10% jobs for the UK. Now the industry is in recession, leaving many people out of jobs. In the past recession, many high-end retailers have disappeared forever, of which wolworth's bankruptcy resulted in the permanent closure of 807 stores and the abolition of 27 thousand jobs. Since the beginning of the year, more than 20000 people have been laid off because of the closure of the store.

　　
At present, British retailers are experiencing the most difficult period in more than 10 years. In fact, the poor retailing situation is not due to the poor management of a large number of shops. The fundamental reason is that British consumers are reluctant to spend money. This is related to everyone's tightening up. This year, millions of families' incomes have been affected by the sharp cuts in spending by the British government. According to the National Bureau of statistics, the disposable income of British households decreased by 0.8% over the same period in 2010, the largest decline since 1977 and the first decline in family income after tax in 30 years. In 2011, middle-income families in Britain actually paid 1.6% less income after taxes than they did in 2008. It translates into a sterling value equivalent to less than 365 pounds, while the British Treasury predicts that the family debt of the British residents will surge sharply in the next 5 years, and the situation of people's difficult life may continue until 2013.

　　
Marvin Kim, the Bank of England governor of England and Spencer Dahl, chief economist, said that the growth of domestic spending in the UK will remain "very weak" in the coming year or even longer. The decline in personal income has made British consumers cautious.

　　
On the one hand, the amount of spare money on hand has been reduced. On the other hand, because of rising prices, the pound on hand is even less valuable. Britain is still facing strong inflationary pressure. In May, the consumer price index (CPI) remained at a record high of 4.5%. A survey conducted by YouGov and Citigroup of the survey company showed that in June, the British public expected CPI to rise 3.9% over the next year to the highest level in more than two years. Wages are stagnant and prices are rising rapidly, making many families struggling to make the retail business customers much less.

　　
A sharp reduction in consumer spending by the British public may further threaten the economy that is struggling to recover. And the economic downturn, in turn, lets consumers cling to their wallets and dare not spend too much money. In such a vicious cycle, the British retail industry experienced severe cold in the midsummer discount season.