As three of the world’s leading economies pull out of recession, there are signs the worldwide crisis may soon be over.
France, Germany and Japan returned to growth in the second quarter of the year, helped by government stimulus packages.
But economists and the markets remain cautious. The whole of the Eurozone remained in recession in the same period and Japan’s recovery is still on shaky ground.
In the UK, the latest CBI data shows high street sales fell for the fourth month running in the year to August although retailers are less pessimistic about the future outlook for their businesses.
Andy Clarke, chairman of the CBI Distributive Trades Panel, and chief operating officer of Asda, said: “These results round off a slow and disappointing summer for many in the high street, and the picture is not set to improve in September. Stock levels have been pared right back as retailers have adapted to weaker consumer demand. However, throughout the year retailers have become less and less negative about the business outlook, and that reflects increasing signs of stability in the wider economy.”
The grocery market has continued to buck the general retail trends, however, with growth of 5.6% in the 12 weeks to 9 August 2009 (TNS Worldpanel).
Within the sector, the rapid growth of the discounters has now waned and TNS reports new shoppers, attracted to these outlets for their low prices, have not converted to regular, loyal customers.
At the same time, Verdict Research reports consumers’ shift from branded to private label lines is permanent and the new battle for market share will be between retailers and within existing range architecture.