BDO optimistic about High Street sales in 2011

| November 8, 2010 | 0 Comments
”BDO

BDO, the accountancy firm, has today provided an optimistic report about the prospects for the UK High Street.

Spending cuts and tax hikes has led many experts to suggest that consumers will rein in their spending, having a severe impact on retailers.

However, BDO suggests that sales will grow by 3% over Christmas as shoppers have one last “fling” before the VAT rise comes into effect on 1 January 2011.

Strong growth is expected over the five week period between November 29 and January 2 and while this Christmas is not expected to be as good as previous years, heavy spending should be seen, according to the research.

Big-ticket items, in particular, are expected to grow ahead of the VAT rise.

Don Williams, BDO’s head of retail, explains: “The UK has one of the most competitive retail markets in the world, and that makes UK retailers very good at what they do. We are a nation of shopkeepers catering for a generation of shoppers.”

Meanwhile, BDO expects shoppers to continue spending in 2011 - despite the tough economic climate brought about by fears of the forthcoming spending cuts.

In related news, research from PricewaterhouseCoopers (PWC) shows that the VAT increase will lead to a reduction in consumer spending in 2011 - but only by about 0.2%.

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