Shopping Trends
Friday, June 22nd, 2007The retail industry has taken major hits according to recent reports. The increases in interest rates has many consumers cutting up their credit cards and using cash instead of high interest rate store cards.
Almost 25 per cent of consumers use shopping to relive stress, according to new research from Retail Trust, with the younger generation – 18 to 24-year-olds – favouring retail therapy as a viable solution to stress.
The report states that men are more likely to carry debt than women. Almost 33% of men owe as much as 20% of their current income in debts such as secured loans and hire purchase car agreements. Older men, over 40 carry the most debt including mortgages.
Considering retail and service industry workers as a demographic group revealed a startling trend. Employees in the retail and service sectors have the highest debts, with eight per cent owing more than 71 per cent their annual income. Most of this is in the form of tenant loans and other unsecured borrowing.
Nigel Rothband, chief executive at Retail Trust, highlights these workers as most in need of financial advice and guidance.
“It is estimated that an astonishing one in five people in Britain work in the retail industry and the survey results reinforce the fact that there are a large number of people in need of help and advice,” he told Retail Bulletin.
The government is instigating initiatives to regain control over debt and educate the publish. However, understanding debt is the first step to creating a viable a solution.
Credit Action reports that personal debt was £1,318 billion at the end of March, 2007, with the annual growth rate recording an increase of 10.5 per cent.
