A British Retail Survey (BRC) published on Monday said that most retailers are apprehensive of their sales on the back of a weak economy and strong inflationary trends.
Nearly two-third of the retailers surveyed said they fear that sales in 2011 will be lower than 2010 and higher VAT will adversely impact consumer spending.
BRC Director General Stephen Robertson said in a statement that “Our snapshot shows retailers expect a difficult December to be followed by a tough 2011. They believe the VAT rise will contribute to higher prices and, with fears about government cuts and the wider economy, people will be put off spending”.
Although 24 percent of retailers surveyed said they expected to reduce employee strength, majority of them were confident that they will create more jobs.
Retailers are hopeful that they will close the year on a positive note during the traditional Christmas – New Year shopping period, despite heavy snow and freezing temperatures.
John Lewis on Sunday said that the week leading to Christmas has seen a jump in sales of 30.6 percent over same period, last year and was recorded at 97.1 million pounds.