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City News Desk Retailers on the high street are struggling to deal with the negative psychology of shoppers who are simply not buying goods at present, with Argos revealing a 9.6% slump in sales, and 20% drop in sales of electronic goods. Comet has revealed in a confidential list quoted in a report by the Financial Times that it is looking at selling 22 prime locations across the UK in order to save £5 million a year in rent on leases. Figures from Comet the electrical retailer showed that it has had the weakest like-for-like sales of any electrical retailer in the UK this year.
Argos which is the largest retailer selling more TVs than any other retailer in the UK showed a fall in profits of 20% in 2010, with the biggest reason for this slump linked to the chill winds in consumer spending.
Supermarkets like Tesco are also selling electrical goods and more consumers are opting to buy products from large supermarkets than the likes of Comet or Argos.
The demographic that is more likely to buy from Argos, working class families, have been hit by higher food and fuel prices, and have not according to research benefitted from lower mortgage rates.
Argos now has to discount goods according to Terry Duddy the Chief Executive of Home Retail Group who own Argos. 32-inch flat screen TVs are now selling at £200 and 37-inch TVs selling for £300.
YouGov has published research found that 40% of consumers in the first part of the year chose to visit the high street.
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