2010 outlook less radiant

Stores that reported strong sales over the Christmas holidays may be in for a tough 2010 as the retail outlook is less radiant than expected.

Matalan, Primark and Peacocks all delivered strong sales in December as customers took to value clothing retailers over mid market department stores.

But while Christmas may have been more cracking than anyone would have expected, concern is rising over conditions this year, reported the Financial Times. Richard Hyman, strategic retail adviser to Deloitte, says this Christmas may have been the “last hurrah ... A lot of the pain that was forecast for 2009 simply did not materialise. It will in 2010”.

The head of the UK retail trade body has warned that 2010 overall will be difficult for the sector despite bumper sales figures from some chains over Christmas.

BRC director general Stephen Robertson said retailers face a "very tough" 2010 with tax rises and continuing economic uncertainty likely to act as a brake on spending. "There will be tough sales and perhaps no growth," he said in an interview with the Sunday Telegraph.