UK shoppers spend less in 2017
This year will see UK shoppers spending the lowest amount of money since 2013, according to figures revealed by Visa, a global payments business. Even though spending was up by 0.3% in August compared with August last year, overall spending this year is expected to be down.
UK shoppers are spending less on transport and clothing, and fewer people are visiting shopping centres, gyms and restaurants.
One reason why British shoppers are spending less is because of the fall in the value of the pound after the UK voted to leave the European Union (EU) on 23 June 2016. This means that the pound has lost value compared with other currencies, including the euro. For example, at the time The Week Junior went to press, £1 was worth €1.10, whereas in July 2015, £1 was worth more – €1.44.
The drop in the pound’s value has forced some shops to increase their prices. This is because importing goods (buying goods from other countries) has become more expensive as the pound weakens. This is bad news for UK shoppers because imported goods have gone up in price. This means that some things cost more than they did a year ago. With people spending less money, many high street shops are struggling to survive.
However, the fall in the pound’s value is good for some British businesses. Businesses selling British goods to foreign buyers may see an increase in the amount of goods they sell, because British goods are now cheaper for them. Tourists will also find it cheaper to come to the UK, so hotels and tourist attractions could benefit.