Warning over retail sales

Published:  02 February, 2010

LONDON: Retailers could suffer a relapse with deteriorating trading this year, as rising taxes, interest rates and the uncertainty over the next government's economic policy takes its toll on consumer spending.

The KPMG/Synovate Retail Think Tank, in its Retail Health Index had predicted continuing improvement of retail sales into the first quarter of this year, but warned of "dark clouds gathering on the horizon" and that consumers will make 3% fewer shopping trips this year.

Nick Bubb, of Arden Partners, said: "A mini-reflationary bubble has been created. But that has to burst eventually and the 'phoney recession' that we had in 2009 will turn into the real thing at some stage this year."

Despite robust festive sales, retailers' fears over consumer spending this year were intensified by anaemic GDP growth of just 0.1% in the fourth quarter of 2009, according to the Office of National Statistics last week.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight

Recruitment

Builders Merchants Vacancies – UK Wide

We work closely with the National and Large Independent Builders Merchants as well as Manufacturers & Distributors. We have vacancies all over the UK for those who work within the Building Supplies sector.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.