Retailers may be encouraged to make better use of piggyback labels after it was revealed that families have less income available to spend than they did last year.

According to the Asda Income Tracker, the average UK household had £172 worth of discretionary spending cash available per week in March 2011, 5.6 per cent lower than the same month in 2010.

This equates to £10 a week less and could mean that retailers are likely to put more promotional labels in place to lower prices for consumers while also encouraging purchasing.

However, the figures do show that family spending power was higher in March 2011 than it was the previous month, suggesting the decline in inflation helped consumers a little.

Centre for Economics and Business Research spokesperson Charles Davis said: "Falling food prices took away some of the pressure on household finances in March - though the rising cost of petrol and transport continues to place downward pressure on discretionary income."

Earlier this month, the British Retail Consortium announced that sales of food items in Britain during March 2011 were "well below" the amount recorded 12 months earlier.

Denny Bros Ltd, 21 April 2011