Terror alert is retailer's nightmare

London independents will experience another tough season after the recent terror alerts, but high street multiples insist sales will hold up, according to last week's Draper's Record. Multiple retailers said footfall and sales last weekend had not been noticeably affected, despite the huge security alerts at UK airports. One major high street operator summed up the mood, saying: "We saw no reverberations at all in central London , which has been performing better than the national picture for several weeks." Another director of a multiple said: "I don't expect there will be any drop in sales or footfall unless there is an actual attack."

However, London independents said ongoing fears of terrorist attacks would inevitably affect trading in the coming weeks. Others warned that while footfall may not appear to be down, it is against very weak figures last year in the wake of the London bomb attacks in July 2005. Nicki Scordi, managing director of six-store designer business Browns, said: "August is usually one of the biggest months for our international visitors. I expect t there will be an impact on footfall after this, especially with US travellers."

The managing director of one London-based mini-chain said he was already seeing a dip in tourism, especially from the US and Middle East . "As soon as the security alert was announced I saw a drop in sales," he said. "The July bombings last year meant there was a downturn until at least December, and I'm not feeling positive about the impact on retail after this either." Tax-free shopping service Global Refund said the airport security alerts were unlikely to have as big an impact on sales at the 7/7 bombings, but predicted a dip in retail sales to non-Europeans of between 5% and 10% over the next three months. However, it expects sales to recover before Christmas.