An expert has warned that the impending festive season is likely to prove even more crucial than usual, with conditions in the British retail market still weak on the back of economic uncertainty.
In an interview with Bloomberg, Ian Geddes - retail partner at Deloitte - suggested December’s UK retail sales figure is unlikely to top last year’s total of £36.2 billion, amid sluggish consumer confidence, poor economic growth and mounting unemployment and inflation.
“It’s as tough as anyone can remember and with sales flat at best this year it’s going to be harder than ever before to be in the winners’ enclosure,” he explained, adding that retailers with a strong online presence could benefit as shoppers look to the internet for bargains.
According to a recent Deloitte estimate, retail spending is likely to remain lethargic until 2013 as public sector redundancies, widespread job insecurities and persistently high prices deter consumers.
Mr Geddes’ remarks came after a study from Verdict Research and business analytics group SAS tipped British shoppers to spend £86.5bn over the Christmas period, with the overall volume of sales slightly lower than in the final quarter of 2010.
