Retail has “Worst Run of Health for 5 Years”

UK retail industry’s health declined in the second quarter of this year, and it expected to drop further next year.

According to a report country’s Retail Health Index, which started at 100 in April 2006, dropped from 82 to 81 in the second quarter.

As expected if there is a third quarter decline, this would mark the “worst run of health for five years” as increasingly intense competition and rising costs of rates, wages and goods take their toll.

“For the past six months, the discounters and high-end retailers have delivered the best performance”.

“Prolonged discounting and crumbling demand have contributed significantly to the prediction that we are set for the worst run of retail health performance for five years.”

Despite the sunny weather throughout June boosting footfall, the report warns that the wavering economy and the end of retailers hedging period pulled down consumer confidence, effecting results.