The British Retail Consortium (BRC) has said that the retail sector may be facing tough times ahead, something which may make stores more reliant on promotional labels.

Recent Office for National Statistics figures showed that last month saw the weakest growth in sales volumes so far in 2011, despite the boost from April's warm weather and royal wedding.

BRC spokesperson Richard Lim said: "Consumers are overwhelmingly cautious about their personal finances and are reluctant to spend, particularly on big ticket items."

He warned that sales are being driven by promotions and special offers, even though it is eating in to shops' profit margins.
Mr Lim suggested that the coming months may also be tough for retailers.

This comes after moneysupermarket.com found that the weekly expenditure of an average adult in Britain increased by £54 over the past six months.

It blamed the rising cost of fuel, energy and food for the fact that many families have now reached an "affordability tipping point".

Denny Bros Ltd, 20 June 2011