BRC warns of tough year for retailers
Major retailers have experienced a bumper festive season but the British Retail Consortium (BRC) is warning the High Street not to be bullish as a “very tough” 12 months is in store.
Last week, British retailing giant, Marks and Spencer, reported its first sales growth in over two years.
The 125-year-old retailer which sells clothes, food and homewares, said like-for-like sales grew 0.8% in the three months to 26 December compared with the same period a year earlier.
Fashion chain Next reported better than expected sales figures for the Christmas period, while the John Lewis Partnership, which is seen as a barometer of British retailing, said like-for-like sales were up 12.7% in the five weeks to 2 January 2010 compared with a year ago.
In addition, this week, House of Fraser and budget fashion retailer, Primark, are both expected to report strong sales figures.
Also this week, the BRC is expected to report that industry-wide sales last month were 4% up on December 2008.
However, BRC director general Stephen Robertson is warning that consumer spending may not grow as a result of tax hikes and continuing economic uncertainty.
In an interview with the Sunday Telegraph, Mr Robertson said: “There will be increasing consumer uncertainty and we will see consumer confidence dropping. There will be tough sales and perhaps no growth.”
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