High cost of living is squeezing households and retailers alike

The increasingly high costs of living are squeezing fashion and retail businesses, particularly with customers shopping for bargain prices and goods on sale.

British jeweller Joules in a trading update this week said its gross margins remained under significant pressure with consumer appetite weighted towards mark downs amidst a heavily promotional environment.

Discount supermarkets Lidl and Aldi have seen sales soar, claiming a combined market share of 16 percent as shoppers continue to look for ways to keep costs down amid soaring inflation and rising grocery prices. On its European online stores Lidl is currently selling duo packs of shorts for 6.99 euros and jeans for 13.99.

Customers are choosing own label brands over established names, not just in grocery but also fashion. Store’s own brands, or private labels, are typically price points that are the openers in a specific category and therefore more accessible.

The Office for Nation Statistics (ONS) reported real basic wages are falling at their fastest rate on record, with the public sector worst hit. It means the high cost of living will continue to squeeze households and therefore retailers alike.