People are buying fewer clothes, home goods as inflation rises
In the past month, people have been going on fewer shopping trips for non-essential goods. This is due to declining confidence in the economy and consumers' own financial situations, according to Nu.nl.
Clothing and home decor items are being purchased less frequently as prices for food and energy keep rising. This is particularly noticeable over the past four weeks, said Jan Meerman, general director of the INretail trade association, to Nu.nl.
"The first half of the year was very positive for many entrepreneurs and sales even exceeded expectations," Meerman explained. "But we have seen that the number of customers has been declining, especially recently."
The sports, fashion and shoe industry, which INretail deals with, has seen a decrease between 5 and 10 percent, according to Meerman. This tracks with the all-time low levels of consumer confidence reported by the Central Bureau of Statistics (CBS) this month. People are mainly concerned about their own finances, making them hesitant to make unnecessary purchases, according to Nu.nl.
Inflation also plays a role, Meerman said. And some people already bought the necessary home good during the coronavirus pandemic, when many home renovations took place, he noted.
Meerman told Nu.nl that, at this rate, he believes retailers will not be able to afford the wage increase demands made by the CNV and FNV. "Inflation is mainly the result of rising energy prices and employers are also affected by this," he said. "How are retailers in the retail sector to afford such wage increases if they do not have fat on their bones because of the coronavirus period?"
