The combination of November's rate rise, higher energy costs and the need to deal with an overhang in spending from this quarter will exert further pressure on household incomes, leading to a reorganisation of spending and cutback on discretionary expenditure.
To add to this, many retailers are already feeling the squeeze from a rising cost base and the need to remain competitive on price, as the grocers wield further pressure across a raft of non-food categories.
For some operators, this burden may prove to be the tipping point, resulting in 2007 beginning on a sour note for retail.
marketing@alchempro.com
