Retail therapy addiction will hold up in 2011

first_img BRITISH consumers are to continue spending unfazed in 2011, despite government cutbacks and higher taxes, according to research by auditing firm BDO.The firm’s Retail Forecasts 2011 report calls the UK consumer a “curious beast” unable to kick an “addiction to shopping” despite speculation about a double dip recession.The report uses a monthly high street sales tracker that has recorded a steady rise in consumer spending this year, leading BDO to project overall sales growth of three per cent over the Christmas period. Consumer spending accounts for 65 per cent of the UK economy.BDO’s tracker, which collects data from 70 retailers with 10,000 stores, showed a 4.1 per cent rise in sales during October. This could suggest a bounceback in consumer demand after government statistics showed a 0.2 per cent drop in retail sales during the third quarter of this year.But it is not clear whether the rally in demand will last. Many analysts had predicted a rise due to consumers stocking up before Vat rises to 20 per cent in January next year and then a sharp fall as they reign back in 2011. BDO’s report, however, says that there will be a “slowdown but no meltdown”, citing the likelihood of low interest rates late into next year and lower-than-expected unemployment figures as supportive of household spending.In addition, it says: “Retailers have had plenty of time to manage their product mix and price architecture to offset the impeding VAT increase.”The report is also optimistic about the UK retail industry as a whole, predicting growth in exports.BDO head of retail Don Williams says: “UK retailers are very good at what they do. We are a nation of shopkeepers catering for a generation of shoppers. As brands get more global, UK retailers are ideally placed to start exporting their skills.”Moreover, with firms sitting on improved balance sheets and unspent capital from spending cutbacks during the recession, BDO says to expect possible consolidation as larger firms snap up a “megadeal” by buying rivals. Retail therapy addiction will hold up in 2011 whatsapp Share Show Comments ▼ Sunday 7 November 2010 8:03 pmcenter_img whatsapp KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesMoney VersedWoman Shares The 5 Words She Said That Left Her Boyfriend In AweMoney VersedZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryGloriousaCouple Had Their Home Demolished Because Of ThisGloriousaTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite Herald Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Tags: NULLlast_img

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