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Retailers face 'very tough' 2010 | Retailers face 'very tough' 2010 |
(about 2 hours later) | |
Retailers are facing a "very tough" 2010, despite posting upbeat Christmas sales figures, the head of the British Retail Consortium (BRC) has warned. | Retailers are facing a "very tough" 2010, despite posting upbeat Christmas sales figures, the head of the British Retail Consortium (BRC) has warned. |
BRC director general Stephen Robertson said consumer spending may not grow in the face of tax rises and continuing economic uncertainty. | BRC director general Stephen Robertson said consumer spending may not grow in the face of tax rises and continuing economic uncertainty. |
"There will be tough sales and perhaps no growth," he said in an interview with the Sunday Telegraph. | "There will be tough sales and perhaps no growth," he said in an interview with the Sunday Telegraph. |
Marks and Spencer has already warned that 2010 trading will be difficult. | Marks and Spencer has already warned that 2010 trading will be difficult. |
AT A GLANCE M&S - like-for-like sales up 0.8% in three months to 26 DecemberJohn Lewis - revenues of £500.8m in five weeks to 2 January. Like-for-like sales up 12.7%Next - like-for-like sales up 3.2% in 22 weeks to 24 DecemberAsda - said it had a 'solid' ChristmasMajestic Wine - like-for-like sales up 11.7% in nine weeks to 4 JanuaryOcado - like-for-like sales up 30% in four weeks to 26 DecemberShop Direct - sales up 6.3% in six weeks to 1 JanuarySainsbury's - like-for-like sales up 3.7%, excluding fuel, in the 13 weeks to 2 January. | AT A GLANCE M&S - like-for-like sales up 0.8% in three months to 26 DecemberJohn Lewis - revenues of £500.8m in five weeks to 2 January. Like-for-like sales up 12.7%Next - like-for-like sales up 3.2% in 22 weeks to 24 DecemberAsda - said it had a 'solid' ChristmasMajestic Wine - like-for-like sales up 11.7% in nine weeks to 4 JanuaryOcado - like-for-like sales up 30% in four weeks to 26 DecemberShop Direct - sales up 6.3% in six weeks to 1 JanuarySainsbury's - like-for-like sales up 3.7%, excluding fuel, in the 13 weeks to 2 January. |
Meanwhile, low-cost fashion retailer Peacocks said on Sunday that its like-for-like sales, which pulls out the impact of new store openings, rose 17% in December and early January. | |
Mr Robertson added that householders were also choosing to save more. | Mr Robertson added that householders were also choosing to save more. |
The RBC is expected to report on Tuesday that industry-wide sales in December were at least 4% higher than the same month in 2008. | The RBC is expected to report on Tuesday that industry-wide sales in December were at least 4% higher than the same month in 2008. |
It comes after retailers including John Lewis, Next and Sainsbury's all reported strong Christmas trading. | It comes after retailers including John Lewis, Next and Sainsbury's all reported strong Christmas trading. |
Upbeat festive figures are also expected this week from supermarkets Tesco and Co-operative. | Upbeat festive figures are also expected this week from supermarkets Tesco and Co-operative. |
Likely tax rises | Likely tax rises |
With a general election due to take place before the summer, all of the main political parties have vowed to tackle the UK's public deficit, which currently stands at £178bn. This will likely mean both tax rises and spending cuts. | With a general election due to take place before the summer, all of the main political parties have vowed to tackle the UK's public deficit, which currently stands at £178bn. This will likely mean both tax rises and spending cuts. |
A new 50% top rate of income tax for those earning more than £150,000 will come into effect from April, and Labour has announced that National Insurance will go up from 2011. | A new 50% top rate of income tax for those earning more than £150,000 will come into effect from April, and Labour has announced that National Insurance will go up from 2011. |
While the Conservatives have put more focus on budget cuts, shadow business secretary Ken Clarke said earlier this month that a Conservative government would not rule out raising taxes. | While the Conservatives have put more focus on budget cuts, shadow business secretary Ken Clarke said earlier this month that a Conservative government would not rule out raising taxes. |
Some commentators expect that if the Conservatives win power, VAT may go up from 17.5% to 20%. | Some commentators expect that if the Conservatives win power, VAT may go up from 17.5% to 20%. |
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