Retail group bemoans 'poor Christmas'

Christmas has been "poor" for retailers, the British Retail Consortium (BRC) has said.

The BRC does not release its official sales figures for the festive period until 12 January, but director-general Stephen Robertson said that the picture "won't be pretty".

"Despite a last minute surge, it's becoming clear that overall this has been a poor Christmas for retailers, as struggling customers cut back and traded down," he said.

Robertson added that large-scale discounts and promotions in the run-up to Christmas will have put profit margins under pressure.

However, he predicted that some online retailers will have seen strong growth, and that food sales will have outperformed non-food sales.

Robertson urged the Government to consider the needs of small businesses when bringing in new legislation.

"Government must recognise that every extra tax and regulation has an impact on prices, under-pressure customers and retailers," he said.

Meanwhile, the Federation of Small Businesses called for a cap on interest rates and credit cards to help small firms.

National chairman John Wright said: "A cap on interest rates will at a stroke not only reduce business costs, but give consumers a real boost and cut the cost of borrowing."