Online retailers and supermarkets to grow sales despite recession

MORE than half of British retailers have reported positive like-for-like sales over the the Christmas period with online retailers along with food and grocery the big winners.

According to research by business advisory firm Deloitte, falling house prices and economic uncertainty didn’t dampen the UK consumer’s spending spirit although many shoppers watched their spending more closely.

Nicola Frampton, retail director at Deloitte’s Leeds office said that aggressive and high profile discounting attracted the bargain hunters and ensured sales didn’t fall too sharply.

However, the impact on the bottom line has been drastic.

“Costs have been steadily increasing for retailers and with such sharp price cuts margins will have been extremely tight,” she said.

“It will be tempting for retailers to focus their energy on surviving today. Those retailers who can manage this while also planning for tomorrow and the future will emerge strongest from this downturn.”

Although Deloitte has predicted a 3% fall in retail sales during 2009, it also speculates a 3% growth in supermarkets.

Online retail will also continue to provide a silver lining to the troubled sector accounting for as much as 10% of retail sales by the end of the year.