Retailers told to expect mixed 2010

Date: 31st December 2009

Companies operating in the retail sector have been told to expect a "year of two halves" in 2010.

Retail research firm Mintel predicted that the New Year would be mixed for most businesses operating in the sector, with a clear difference emerging around the time of the general election.

Richard Perks, director of the organisation, said that things are likely to remain broadly the same until the election.

"Unemployment will carry on going up but I don't think we will get a rise in interest rates," he noted.

"After the election we will get the tough budget we have all been waiting for and I think come the autumn interest rates are actually going to start going up again as well."

The comments come after a report from the British Retail Consortium revealed that most companies in the sector are expecting an easier 2010.

According to the study, more than one-fifth of retailers believe they will enjoy better sales in the New Year.