Retailers predict Christmas slowdown

According to the latest survey conducted by the CBI, retailers are mainly negative and have predicted falling retail sales over the Christmas period.

40 percent of respondents indicated that they believed that sales would be lower than in December 2007.

Retailers were even gloomier about retail sales in November, given the fact that there is already a huge price war with even major retail giants such as Mark & Spenser participating in big discounts prior to Christmas, in order to entice buyers back to the high street.

46 percent of the poll revealed that they believed retail sales to be lower in the first half of November than in 2007, although that was prior to heavy discounting.

The fall of the retail giant Woolworths indicates just how harsh the current market is, with most of the public feeling sympathy towards the fact that Woolworths is seen as an icon on the high street, as well as understanding the resultant effect of over 30,000 job losses.

MFI are seemingly heading in the same direction as Woolworths with the administrators being called in due to the collapse in the housing market, the demand for white goods and furniture has plummeted.

Howard Archer, a Global Insight economist, has said that the figures from the high street could force the hand of the Bank of England in cutting interest rates again this week.

Story link: Retailers predict Christmas slowdown