UK retailers may need to make changes to their inventory strategies in the coming months as the industry faces up to "a very tough" 2010.
According to Stephen Robertson, director general of the British Retail Consortium, sales are unlikely to grow over the next 12 months as the effects of the recession persist.
Speaking to the Sunday Telegraph, he said the recent VAT increase and rising unemployment will cause consumer confidence to drop further during the coming year.
Richard Perks, director of retail at consumer intelligence firm Mintel, agreed that conditions are only likely to get tougher.
"We haven't had a retail recession yet. People have cut back on spending, but have tried to maintain their lifestyles as far as possible," he stated.
"That will be so in 2010 and 2011, but I can't see how retail will avoid a downturn towards the end of this year."
Mr Perks added that internet retail may still do well, but pointed out that the majority of online demand is from store-based sellers, making it a somewhat "artificial" distinction.
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