'Subdued' confidence in retail sector

Date: 30th December 2009

Businesses operating in the retail sector are displaying "subdued" confidence, an industry expert has said.

Professor Joshua Banfield, director of the Centre for Retail Research, said that the majority of retailers are waiting for the Christmas period to come to end before working out their prospects for next year.

He added that several parties believe that there will be less money available in the market in 2010 as a result of cuts in public spending and the VAT rise, which is planned for January 1st.

"Most retailers said 'we are ready for Christmas'. They are saying that when they have Christmas out of the way they will then know what the next year is going to be like," Professor Banfield noted.

"Retailers will be using Christmas to work out how they are going to play 2010. I think people are going to remain cautious. I think there is subdued confidence rather than excitement."

The comments follow the publication of the Nationwide Consumer Confidence Index earlier this month, which revealed that general consumer sentiment remained unchanged from November.