LONDON (MNI) – The British Retail Consortium’s Christmas Trading
Snapshot Survey published today shows 54% of retailers expect sales to
be the same or better than last Christmas, suggesting that, when it
comes to spending, the British consumer will remain defiant in the face
of looming fiscal tightening and persistent high inflation.
Thirty six per cent of retailers are braced for figures to be down
on the year, the BRC said.
Seventy one per cent of retailers think the January rise in VAT to
20% means customers are bringing forward purchases, and more than eight
out of ten expect the VAT change to have a negative impact on sales in
January, the BRC said.
Commenting on the survey, Stephen Robertson, British Retail
Consortium Director General, said:
“It’s reassuring to see a majority of retailers believe Christmas
sales will be at least as good as last year even if a third say they
will be worse. But, considering inflation is now at 3.2%, growth of
anything less then that would be a real-terms fall.”
“Promotions have hit a new level of intensity, retailers believe
the next VAT rise is bringing sales forward and Christmas is usually a
time when people spend despite their economic worries but ultimately
December could prove to be the ninth month in a row of weak year-on-year
growth.”
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$, MABDS$]
