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By
Reuters
Published
Jan 3, 2011
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UK retailers fear lower sales in 2011

By
Reuters
Published
Jan 3, 2011

Most UK retailers are expecting lower sales in 2011 on the back of weak consumer demand and inflationary pressures, a survey by the British Retail Consortium (BRC) said on Monday.


Marks & Spencer: the U.K.'s largest clothing retailer

The BRC's survey said nearly two-thirds of retailers it had contacted expected sales to worsen from 2010, and many also expected next year's rise in the VAT (value added tax) levy to impact consumers' spending.

"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," BRC director general Stephen Robertson said in a statement.

The BRC added that retailers were still expected to create new jobs in 2011, although 24 percent of those surveyed said they expected to employ fewer people.

Britain's retailers are hoping that shoppers will have turned out in force for the traditional Christmas holiday sales period, despite weather and transport problems.

On Sunday, John Lewis said sales in the week to Christmas Day had risen by 30.6 percent compared to the same period last year, to reach 97.1 million pounds ($149.9 million).

(Reporting by Sudip Kar-Gupta; Editing by Hans Peters)

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