Retail sector healthy in Q1, set to be less so in Q2

The think tank (RTT) admitted to underestimating the ability of retailers to maintain margin and the desire of shoppers to ignore negative pressures on demand in Q1.

Only costs out of the three key performance indicators were determined to have had a negative impact on the overall state of retail health when the board met 18th April.

"What this tells us is that consumers have been unexpectedly resilient to downward pressures on demand in quarter One and retailers have succeeded in maintaining margin," said the RTT.

Things aren’t looking so great for Q2, apparently. "The RTT expects that the state of health of the sector will deteriorate in Quarter 2," it said. "It will be a period when only the most able retailers will be in a position to post good results and when the wheat may well be separated from the chaff.”