Retail insurance holders are working to tight budgets to bring discounts to their customers, it has been claimed.
Richard Dodd, spokesman for the British Retail Consortium, pointed out that this year has seen summer sales start earlier than usual as companies attempt to retain customers over the recession.
"Financing that is difficult for some as it means that using margins which were already very tight," he added.
Mr Dodd explained that reducing the prices has forced retail insurance customers to look more closely at their costs and attempt to identify opportunities for savings which have been missed previously.
Furthermore, the representative predicted that retail insurance holders are likely to see increasing sales when the recession begins to ease, as the reduced consumer spending which has been seen of late is unlikely to be a permanent shift in behaviour.
Last month, the Office for National Statistics revealed that the volume of retail sales in May was 1.6 per cent lower than was recorded in the same month in 2008.
