European debt crisis and uncertainty is affecting retail
In the United Kingdom, consumers are still spending cautiously as uncertainty stemming from the European debt crisis and other factors loom overhead, Retail Gazette reports.
Colliers, a real estate firm, suggests the debt crisis, as well as poor weather, have created a sense of apathy among U.K. consumers, which is why they aren't spending as much on retail. While spending is up on food and beverages due to recent celebrations, many residents are still neglecting to spend money on big-ticket items until prospects improve.
"The U.K. economy in terms of retail remains soft. There may be months of more positive growth but the sector is suffering from less customer wage increases meaning people have less to spend," explained Neil Saunders, an associate at Colliers. "The general underlying trend is weak confidence which dissuades and discourages people from making purchases."
In other countries, such as the United States, prospects for retailers have been much better. Although sales growth is slowing, it has still been up in the U.S. for the past several months.
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