British consumers are beginning to feel the pinch of the credit crunch and are unwilling to spend cash on unnecessary items, it has been claimed.
According to the British Retail Consortium, sales in UK outlets fell by 0.4 per cent in June, compared to the previous year.
BRC spokesman Richard Dodd suggested that Britons were cutting back on a majority of non-food items in a bid to save money.
"People are short of spare money and what spare money they have they are reluctant to spend because they are nervous about how conditions are going to shape up," he explained.
Mr Dodd pointed out that items such as furniture and electrical goods were failing to sell and said there was no indication of when the situation would improve.
Figures from the Confederation of British Industry revealed that grocers, supermarkets and footwear retailers were among the only groups to have seen growth this year.
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