Financial Times FT.com

Inflation hits shopping habits

By Delphine Strauss

Published: June 26 2008 02:26 | Last updated: June 26 2008 02:26

Shopping patterns are changing as higher living costs force people to scrimp and save in the week before pay day, Asda’s retail director said on Wednesday.

Andy Clarke spoke after the release of data showing trading conditions remained tough in June. The monthly survey by the CBI employers’ group suggested only a modest improvement in retail sales volumes, albeit a better performance than analysts had expected after very weak survey readings in April and May. The CBI said a balance of 9 per cent of retailers reported falling sales volumes in June, better than the balance of 14 per cent the previous month but a level that would normally be consistent with sluggish sales growth on official measures.

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