Sales confidence on the increase among retailers

Date: 14th December 2009

Sales conditions will improve this Christmas, when compared to 2008, retailers have indicated.

According to a survey from the British Retail Consortium (BRC), 42 per cent of business people believe that there will be an improvement on last year’s sales.

A further 58 per cent said that sales will be "no worse" - suggesting that no respondents of the survey believe that they will experience a decline in business this year.

The rate of VAT, which will increase from 15 per cent to 17.5 per cent on New Year's Day, was also seen as a potential factor in customer numbers.

Just over half (53 per cent) believe that December's sales would be "boosted" as a direct consequence of the rate change.

Stephen Robertson, BRC 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 VAT change was confirmed by chancellor of the exchequer Alistair Darling in last week's Pre-Budget Report.

Posted by Jacob Williams