Nearly two thirds of retail outlets expect retail sales to worsen next year compared with 2010 but still plan to invest in and create more jobs throughout the year.
According to the British Retail Consortium's (BRC) Retail Prospects for 2011 snapshot, just 18% of retailers expect an improvement in sales next year. However, despite fears of a decline, 47% of firms plan to create jobs in 2011

BRC director general Stephen Robertson said: "We were expecting the final figures for December spending to be modestly up on last year but we now have to factor in the effects of the nightmare weather. Despite the combination of snow and concerns about their money and job prospects, most customers were still determined to buy the things they wanted for Christmas and did seize the opportunities they had to shop."

He added: "Our snapshot shows retailers expect a difficult December to be followed by a tough 2011. They believe the VAT rise will contribute to higher prices and, with fears about government cuts and the wider economy, people will be put off spending."

"But the positive news is that retailers have their eyes on the horizon and are demonstrating more faith in longer-term prospects. An encouraging proportion intends to increase investment and create jobs."