More than four in 10 UK retailers are confident Christmas trading in 2009 will be better than during the festive season last year.
In the British Retail Consortium’s (BRC’s) Christmas Trading Snapshot Survey, published today (11 December), 42% of retailers said this Christmas would be better than last year’s with the rest saying sales would be on a par with Christmas 2008.
None of the respondents thought business would be worse than last year.
Almost half of retailers expected greater discounting in the run-up to this Christmas, only a quarter expected less.
More than 50% thought December’s sales would be boosted by customers bringing their purchases forward to beat January’s VAT increase.
But nearly half of retailers predicted sales in the New Year would be harmed by the increase in the VAT rate to 17.5%, which the chancellor has confirmed for 1 January.
Stephen Robertson, British Retail Consortium director general, said: “There’s some good news here but we’re not out of trouble yet.
“I’m reassured that retailers are more confident about their prospects this Christmas but remember the comparison is with dramatic sales falls last year. There are more customers willing and able to spend now but, for many retailers, it’s taking even more discounts to persuade them to buy.
“The impact of the VAT increase is a concern for half the respondents but other clouds are gathering. Customers are cautious. Jobs are a big worry and neither will be helped by the tax-battering promised by the chancellor.”
