Store cards see slower high street sales

Wednesday, 20 April 2011 02:51

High street sales of consumer credit in the form of store cards were down in February, a frequent low point for the market over the course of the year.

Figures from the Finance & Leasing Association show high street sales of store cards dropped by 24 per cent, while store instalments' contributions to consumer credit were down by 22 per cent year-on-year.

In all, consumer credit granted in February 2011, compared with the same month of 2010, was down six per cent to stand slightly below £3.5 billion.

Fiona Hoyle, head of consumer finance at the Finance & Leasing Association, says: "It's been a long winter of high inflation and low wage growth, meaning that consumers have less to spend."

She adds that "February is traditionally quiet after the New Year sales period", but says some parts of the market still do not show the usual signs of picking up.

Away from the high street, the New Year sales on car forecourts had the desired effect for motor dealers, leading to an unexpected spike in finance deals in January.

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