UK shoppers are beginning to show signs of feeling the economic pinch.

Leading supermarket chain Asda, returned a second successive quarter of declining profits on underlying sales, prompting fears that this could be the start of a wider trend, as taxes and fuel costs rise. This comes on the back of the emergency budget, and ahead of the VAT increase at the end of the year.

The Walmart-owned UK supermarket said that sales fell by 0.4 per cent in the quarter ending July 31. This followed a previous quarter drop of 0.3 per cent in the first quarter, the first time Asda fell in underlying sales in the past five years.

Chief executive Andy Clarke took some of the responsibility for the returns, saying the group was not fully focused on their customers, which would hopefully change. The lack of attention to the consumer resulted from Asda dealing with its own budgetary constraints according to Clarke, who added that the supermarket was sticking to its everyday low price philosophy that emphasises fewer promotions and better quality products.

Asda removed one third of its multi-buy offers in the past three months, with staple groceries such as milk, eggs, sugar and bananas all returning lower prices in the past few weeks. Asda trailed its supermarket rivals when it came to sales growth, reporting a 2.9 per cent increase in the three months ending August 12. Morrisons was at 6.9 per cent, with Sainsbury’s improving by 5.9 per cent and Tesco 3.9 per cent.

Sainsbury’s has bucked the economic trend away from spending on new technology.

Investment in technology in the retail industry is set to be stagnant in the UK for the foreseeable future, as most high street stores and supermarket chains brace themselves for another economic downturn.

The austerity budget and impending VAT rise has seen widespread speculation that the industry could be confronted with a period of loss, leading to financial outlays for development of existing technology to be capped as most leading companies say that they have no IT overhauls planned. In some cases, computer systems are up to 20 years as old but are kept on as long as they do the job.

According to a report published last week by Martec International, a leading retail sector consultancy specialist, Tesco is the retailer that seems most content with its incumbent IT system. Their latest upgrade was in 2007 while the yearly spend on IT investment is £200 million. Rival Sainsbury’s spends around £220m per year on IT according to the Martec study, which also reported that UK’s leading supermarket chain is planning on updating its store, e-commerce and supply chain systems next year. The in-house system used by staff, installed first in 1995, will be upgraded the following year.

While Frances Riseley, practice manager at Martec, said that many retailers were hesitant to reveal their IT plans for fear of rivals being alerted to their developments, his group’s survey did establish that 19 per cent of the 142 British retailers polled said the reason for not revealing any details was that they were either being finalised or had not been considered.

Good news for those UK holidaymakers planning on heading into the Eurozone on a shopping spree.

The continued strengthening of the pound against the euro has meant that the average shopper will be able to enjoy around €56 more per head this year. The performance of the sterling is a much needed and welcomed boost to shoppers after recent budgetary frustrations, but key to making the most of the rates is to ensure the best deal is also found on currency exchange.

Currency specialist broker currencies.co.uk, which was formerly known as Foreign Currency Direct, has estimated that 29 per cent of Britons will be holidaying across the Eurozone during summer, meaning nearly a third of the population. Excluding travel costs such as flights and accommodation; they are predicted to spend £702 per person in stores, restaurants and bars. Last summer, that amount would have equated to around €815, but now holidaymakers are receiving €871 – or an extra €56 to spend.

However, despite the improved exchange rate, around two million UK holidaymakers will not make the most benefit of their cash by mostly taking out euros from ATMs overseas, which usually means heavy bank fees. In addition to the multiple bank fees associated with ATMs, yet more will change their cash immediately on arrival at airport exchange kiosks that are notorious for having some of the highest commission rates and poorest exchange deals.

The best bet is to head to the high street banks, where as much as 6 per cent can be saved on all transactions compared to overseas or specialist foreign currency providers.

Leading UK retailer Debenhams has revealed the most unlikely of fashion superstars.

Spearheading the new clothing line to hit the high streets is the famous British walker Alfred Wainwright.

Wainwright is more commonly known for his walking guides to the Lake District, along with a reputation for foul moods to suit the foul weather. He is renowned as a notoriously bad dresser, which in some part could explain the new wave of counter-chic. Over the past two years, his fame has increased markedly thanks to a host of radio and television programmes about his life.

The public exposure has cascaded down from the cliffs to the high street in that time, with demand for walking boots, rucksacks and all-weather, hiking-style clothing soaring, leading Debenhams Director for Menswear Buying, Paul Baldwin, to call the new trend ‘Wainwright Chic’. Baldwin claims that both women and men across Britain have taken to the rugged outdoors look, and that the hill climbing image usually reserved for the most extreme of weekends has now found a place in everyday wear. In the past, specialist clothes such as Wainwright’s defining look were the preserve of nature enthusiasts and train-spotters only, but Baldwin says they are now just as likely to appear on the streets of Chelsea and Kensignton as Scafell or Grisedale Pike.

The Wainwright look usually involves a woollen jumper, belted coat and aged flapped-ear cap. These are most often complemented by trousers that use braces rather than a belt for support and which are tucked in to thick woollen socks. The choice of footwear is traditionally unstylish but highly functional.

Leading retailer Asda has introduced a new minimum pricing structure on alcohol.

The group has further declared that it will undertake closer working relationships with the UK government to ensure that it is at the forefront of tackling alcohol misuse and abuse across Britain.

The announcement follows the recent high-profile media case of a Tesco store that sold wine for less than cost price in Scotland, leading health campaigners to claim that supermarket chains could not be trusted to be self-policing when it came to the sale of alcohol.

Asda introduced its new alcohol policy on Tuesday, whereby a floor price of duty plus VAT is set on more than 99 per cent of the alcohol sold by the group. This will result in a minimum price of £8.95 for a 20-pack of 440ml 5 per cent strength cans of beer, which would be made up of a duty of £7.62 plus the VAT of 17.5 per cent on top. Similarly, a 750ml bottle of wine would go for a minimum of £1.99 and a one-litre bottle of spirit such as vodka at £10.49.

Asda has also proposed that the government enforce the same policy throughout the entire retail industry in a letter to home secretary Theresa May from chief executive Andy Clarke. Mr Clarke claims that Asda supports a Responsibility Agreement on Alcohol development agreement to ensure that the previously successful partnership between government and industry would not be wasted, and that in conjunction with the OFT, all those involved would be responsible for establishing a safe retail environment which would openly discuss and tackle the issues of alcohol misuse across the UK.