Insider Media Limited

Midlands retailers are preparing for an improvement in trading conditions this Christmas, according to PwC. The accountancy firm said shoppers are looking to spend ahead of the VAT increase in January.

However, any increase in like-for-like sales is expected to be small as shoppers consider the potential knock-on effect of the planned public sector spending cuts.

In its latest report, PwC found that 42 per cent of high street retailers were advertising sales or promotions in their shop windows. This compares to 52 per cent at the same point in 2009 and 47 per cent at the same point in 2008.

According to retail experts at PwC, they are feeling more confident about Christmas trading than they did last year.

Andy Lyon, partner and retail expert at PwC in the Midlands, said: “Retailers know what they are dealing with this year and they are preparing for a small improvement in trading conditions. After over stocking and being caught short two years ago and getting things about right last year, they are more confident that they have made the right adjustments by staying focused on margins and keeping stocks to more modest levels.

“There is still considerable cautiousness in the marketplace, but retailers are feeling more confident than this time last year that shoppers will be turning up and spending money this Christmas – at least on similar levels to last year and possibly slightly more.

“We seem to have found a new, post-crunch normality for retail trading at Christmas - it’s affordable spending on products that represent both value and quality.”