The year 2010 is going to be another tough year for the retailers in the UK, who are likely to cut more jobs driven by low consumer demand and weakness in the economy, says a survey.
According to British Retail Consortium's 2010 Concerns Snapshot Survey, retailers are concerned over factors like low consumer demand, rising unemployment, increase in personal taxes and weakness in the economy that could affect the strength and speed of recovery in the New Year.
The survey further said that uncertainty is affecting retailers' ability to maintain and create jobs, with nearly a third of retailers surveyed saying they expect a fall in employment next year compared with this year's. "A third of retailers in our sample said they would cut more staff in 2010, while one in five said they would be increasing staffing levels," the survey said.
Four out of five retailers said they expect retail sales in 2010 to be same as that in 2009, which was one of the worst year in terms of sales affected by the financial turmoil. But, encouragingly, none thought sales would be worse and just over a fifth thought they would be better, it said.
"It's reassuring that our snapshot shows no retailers expect sales in 2010 to be worse than this year. But factors, such as weak consumer demand and rising unemployment, are at the heart of retailers' concerns about how the recovery will pan out," British Retail Consortium Director General Stephen Robertson said.
Weak consumer demand topped the respondents' concerns with 22 per cent of retailers citing it as their main worry for 2010, followed by rising unemployment (20 per cent). Increase in personal taxes and weakness in the economy were cited by as many as 16 per cent of the respondents.
The survey said it has been a healthier retail Christmas than last year. "... More customers have felt confident enough about their own circumstances to spend – a modestly encouraging sign for the overall economy," Robertson said.
He further said politicians of all parties must recognise it's business that will take us out of recession with retail leading the way.
"They must bring the public finances under control while avoiding excessive tax rises that would undermine demand, jobs and consumer confidence. Targeted, substantial and genuine pruning of public spending must take priority over tax increases," he said.
