UK retailers are feeling pessimistic in the traditional peak pre-Christmas trading period, with only 15 per cent anticipating they will have a better Christmas this year compared to 2009, according to research by Cybertill, a supplier of retail software.
Cybertill polled its 600 retail customers in a variety of sectors, including fashion, bicycles, sports, discount, footwear, department stores, charity and off-licences, and 41 per cent said they expect sales to be down this Christmas, while 37 per cent expected roughly the same levels of trading.
When asked about trade in 2011, only one in four were confident sales would improve.
Reasons for this lack of confidence included government spending cuts and poor consumer confidence following recent economic troubles in Eurozone countries.
The survey also revealed that 50 per cent of retailers plan to pass the VAT rise onto customers. Thirty-seven per cent said they would absorb the increase, while 13 per cent remain undecided.
Twenty-five per cent of retailers surveyed also stated that austerity cuts had affected their business.
Of those affected, 33 per cent had seen a reduction of 10 per cent or more in takings.
However, 58 per cent of retailers said they have not yet been affected by the impending cuts.
