Complete Finance Blog

UK retailers are praying for a cold snap as we approach the festive period with unseasonably warm weather set to impact upon the sale of traditional warmer items on the high street. While it is unlikely that this period of relatively warm weather will continue for much longer, the longer it does continue the more impact this will have on the UK high street and the UK retail sector.

There are also more calls from the sector for the UK government to delay restoring the VAT rate back to 17.5% until at least after the festive period and the New Year sales are over. It is no surprise to see this plea from the retail sector which literally needs every penny it can get to ensure as many companies as possible are able to live to fight another day in 2010.

Only a few weeks ago there were high hopes of a recovery on the high street but these have been dashed over the last few days with news that the UK economy is still deep in recession and performing markedly worse than many people had expected. It seems highly likely that a number of “big names” on the high street will struggle and the collapse of Woolworths is unlikely to be the last major casualty of this recession.

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