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2nd February 2010
Uncertainty over economic policy could threaten retailers
UK-based retailers could face a difficult 2010 if surrounding economic conditions become unsupportive of the trade, it has been revealed.
While the UK may have exited from the recession in the final quarter of last year, growing 0.1 per cent, warnings over a "relapse" in trading conditions have been sounded.
Retailers could incur problems as a result of rising taxes, interest rates and uncertainty surrounding the next government's economic policy.
Nick Bubb, of Arden Partners, said that 2010 could prove to be much harder than the last year.
He said: "A mini-reflationary bubble has been created. But that has to burst eventually and the 'phony recession' that we had in 2009 will turn into the real thing at some stage this year."
Furthermore, the KPMG/Synovate Retail Think Tank has suggested there are 'dark clouds gathering on the horizon', despite its prediction of improvement in the first quarter of the year.
It also reveals that shoppers will make three per cent fewer trips this year.
© 2010
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