The year certainly saw much weaker retail sales growth than any other in the last five, but there was certainly no recession and consumer confidence remained high. We believe that the main reason for the slight relative improvement was that inflation in foods was above the average for retail sales in 2003...
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Spending on food would not have responded to that small relative difference and the proportion of food in the spending mix therefore increased. For the food retailers, food is the core of the business and the principal traffic driver. Tesco and ASDA have both managed to become destination outlets for some non-foods, but that is very unusual in the context of UK food retailing...
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