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May upturn heralds 'Bargain Bonanza' says SPSL

Published: 5 June 2008
It seems it may not all be doom and gloom on the high street as the latest figures from the Retail Traffic Index (RTI) compiled by analysts SPSL show a marked increase in the number of non-food shopping trips made in May.
May figures saw an unexpected 2.2% rise compared with the same month in 2007, and an encouraging 6.4% increase on April this year, the first time that May has outperformed April for three years.

SPSL's retail psychologist, Dr Tim Denison said the weather has played a part with seasonal purchases seeing a hike at the beginning of the month. However, he added, it isn't clear what this tells us in terms of a longer-term trend or prediction, but it certainly isn't all sunshine on the horizon.

"A closer look at the figures asks more questions that it answers. Are we seeing an improvement on trend and a move upwards from the lower shopping plateau that we believe was reached last month? Probably not," he said.

Poorer weather in May last year has "flattered" this year's figures and a slow March and April has meant retailers have entered into footfall-capturing campaigns which include deep discounting particularly in sectors such as homewares, painting the figures in a less rosy light.

"Looking forward," says Mr Denison, "we predict that June will see even more special promotions designed to get shoppers out of their homes and into the stores. Expect to see downloadable vouchers, normally only seen at Christmas; one-day or even one-hour events; special warehouse 'summer clearances' and stock liquidations in every sector. Expect a bargain bonanza right through to September."

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