We're back with you today in our regular Friday lunchtime slot, following that extra-long, Jubilee bank holiday weekend.

This was quickly followed up by another event for our sector returning in full effect, Cereals. Duncan and #TeamTAP were there in force meeting exhibitors and visitors - and you can read our agricultural machinery editor, Martin Rickatson's thoughts on the show here.

Service Dealer owner Duncan Murray-Clarke and #TeamTAP (plus Jane Craigie) at Cereals this week

Looking back amongst the national celebrations last weekend though, I do hope our dealer readers found something to cheer about in their own showrooms - hopefully capitalising on the public spending some bonus time in their outside spaces?

I do fear though that both a lack of stock and a tightening of household purse strings might have inhibited what could have been a bumper few days in the dealership?

But then again perhaps not as I did notice in this report on the BBC that Barclaycard had announced - based on credit and debit card transactions - that over the four-day Jubilee bank holiday weekend, people did spend "significantly more" than the equivalent dates last year. Admittedly it wasn't a bank holiday this time last year, but still, that's quite encouraging.

However before we get too excited, this brief bright spot is somewhat tempered when one takes into account that the comment comes at the end of an article entitled "Shoppers rein in spending as incomes squeezed".

The BBC's report is based on the British Retail Consortium's analysis of spending during May that found total retail sales declined by 1.1% compared to May 2021.

In the summary published by the Consortium, their chief executive, Helen Dickinson OBE, says, "Sales continued to see declines as the cost-of-living crunch squeezed consumer demand. Higher value items, such as furniture and electronics, took the biggest hit as shoppers reconsidered major purchases during this difficult time."

Her statement goes on to make concerning reading for dealers, saying, "It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers spending power."

Also significant for our readers in the BRC's press release, Paul Martin, UK head of retail at KPMG is quoted as saying, "The rising cost of living is going to remain the main story for retailers for the immediate future, with consumer confidence a key factor to watch out for."

Bubble finally bursting?

Not to be alarmist, but these words are serious. We know from many conversations we've held, both dealers and manufacturers have been concerned for some while that the 'spending bubble' that our industry has enjoyed would come to an end at some point. Are we seeing this kick in now?

Until recently, based upon hearing from our readers, I'd say this sector has not faced a significant downturn over the past two years. The word we hear repeated to us from dealers is 'busy'. 'We're so busy', 'we're rushed off our feet', 'we haven't got a moment to reflect' etc etc.

But is a slowdown inevitable? If your customers can't fill up their average family car for less than £100, does it automatically follow that they'll be cutting back in other areas - like machinery for the outdoors?

We have started to hear comments from dealers that perhaps sales of new goods are dropping back, with workshops now filling up with machines that customers want to prolong the life of. Also multiple readers have spoken about the soaring demand for second-hand machinery. The problem with this of course, being just how scarce quality used kit has become.

So what's the solution? Diversification? Certainly we know of dealerships who are broadening their offerings into new, but related areas. Could this be something to give thoughtful consideration to as we move forward into uncertain times? Returning to Cereals for example, Duncan was Tweeting about companies such as UTV Lighting who offer LED lights for agriculture, who might be an avenue for dealer added revenue?

There is still a cost of living crisis across the board regardless of what is being sold of course, but by widening slightly what the dealership offers, might this spread the risk?

What do you think? Is it time to make some changes to combat what's ahead?

And what was the Jubilee weekend like for you? Was it akin to a good Easter part 2, or was it as flat as Rod Stewart singing Sweet Caroline?

Let us know in the comments below.