Retail bosses are calling on the Bank of England to cut interest rates following a drop in sales.
The British Retail Consortium said same-store sales fell 2.4 per cent in May, compared with a year ago, and is predicting a consumer-led recession.
Despite this however, total sale, including new store openings, were up by 1.4 per cent.
Kevin Hawkins, BRC director general, said: “We urge the Monetary Policy Committee to reduce interest rates at this week’s meeting.”
A number of well-known high street names have reported subdued sales, and Hawkins said many retailers were having to offer reductions and put on sales days to attract customers.
“Consumers are not spending unless there is a price offer, or it is something very new and trendy,” said Hawkins.
“The consumer seems to have gone on strike... no-one can see where the upturn is coming from.”
