Consumers are short of money and unwilling to spend it on anything other than essentials, according to one expert.
Richard Dodd, spokesperson for the British Retail Consortium (BRC), explains that the current economic downturn is hitting the public in the pocket and this is having a knock-on affect for shops.
Mr Dodd said: "There is no indication that things are going to improve any time in the near future because those pressures on customer's personal finances are clearly here to stay."
However, falling oil prices in recent weeks have given a slight cause for optimism, he added.
But there is no reason for consumer confidence to rise in the near future as people are still worried about the prospect of things getting worse, Mr Dodd warned.
According to the BRC's sales monitor for June, the value of goods purchased last month was down 0.4 per cent on a like-for-like basis when compared with June 2007.
