With unemployment hitting the 2.5 million mark, it is very difficult not to think about the recession even during the holiday season. Yet, some encouraging signs have started appearing on the generally gloomy horizon.
The recessionary squeeze has worked in favour of some industries, such as domestic tourism which benefited from Britons holidaying in the UK, discouraged from going abroad by the weak pound and fears over unemployment.
The same domestic holidaymakers shopped at the John Lewis Southampton store boosting the sales at this store by 15.9 %, the highest weekly increase so far. This was in addition to the overall weekly sales increases at John Lewis of 5.6% on last year - in mid-August.
Meanwhile UK house prices rose for a third month in July, according to the latest survey from Nationwide Building Society, which predicted that prices will rise further by the end of 2009. The average price of a UK home climbed 1.3% in July. Martin Gahbauer, chief economist at Nationwide, said that the chances that prices gain for the year is "not an unreasonable prospect given the momentum now in the market." Well, there is something to hope for.
Perhaps a positive sign for the independent retailers is also the emergence of the ‘hypersensitive consumer' (see page 5) who refuses to tolerate poor service and generally has increased expectations of shopping experience. The BDO research also shows that 71% of people are happy to treat themselves in these difficult times, and it is reasonable to expect that with skilful salesmanship, independents should benefit from the general desire for a bit of self-indulgence.
Anna Ryland, Editor
