Retailers expect January recession

Will 2008 see the start of a retail recession? Thursday's newspaper headlines seem to say a retail slump could be just around the corner in 2008. Today's Metro, the freely-distributed morning paper read by commuting London had on its front page: 'Recession fears grow as shop sales slide.' Apparently the UK's high street has endured the worst sales in over a year. Only eight per cent of retailers said they had seen a sales rise in the first two weeks of December, according to the Confederation of British Industry.

Worse still, sixty per cent of retail businesses thought January would see a further fall in profits. High street conglomerates such as House of Fraser, Selfridges and BHS have started their sales early in an effort to gain profit margin and entice shoppers to spend.

According to Metro, chain stores are clinging to the hope that business will pick up in the last few days before Christmas when shoppers are expected to splash out £2.1 billion.

Shoe and leather manufacturers have seen some of the worst sales of all the retailers surveyed in the past month. Financial experts are warning the UK is likely to enter a recession, although Gordon Brown on Wednesday said the UK will be able to 'weather the global financial storm.'