Retailers who have adjusted to the economic conditions will enjoy a better Christmas 2009 than many would have expected following a turbulent year for the retail sector, according to the latest KPMG/Synovate Retail Think Tank (RTT) white paper.
The RTT said retailers who have tightly managed stock, adjusted to the levels of demand and put the emphasis on cost control will be in good shape to face Christmas and the year ahead.
The RTT predicted relatively solid trading for retailers on the back of reviving consumer confidence.
Professor John Dawson said: “Having had a full year of doom and gloom, retailers and consumers have adjusted to some extent. Last Christmas it was all unknown – and it has turned out not to have been apocalyptic.”
Nick Bubb of Pali International added: “The huge government stimulus launched at the end of last year is still working through and Christmas falls in a favourable window before the big payback begins, in the form of significant tax rises and spending cuts after the election.”
The RTT said margin protection was now the key business imperative for retailers as less volume needed to be shifted compared to last year as a result of the reductions in forecast sales due to the trading environment.
