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Published
Sep 1, 2009
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UK retailers face worst of recession in 2010

By
Reuters
Published
Sep 1, 2009

LONDON, Sept 1 (Reuters) - Britain's retailers will not feel the worst of the recession until next year, when rising unemployment will drive more than 5,000 of them out of business, according to a report published on Tuesday 1 September.



Accountants and business advisers BDO Stoy Hayward LLP predicted 5,070 retailers will go bust in 2010, up from a forecast 4,630 this year.

"Unemployment has risen less than the economic contraction originally suggested, with a flexible labour market allowing employers to reduce hours and wages rather than make redundancies," said Tony Nygate, retail business restructuring Partner at the firm.

"These factors have helped maintain retail spending surprisingly well in the face of recession and have been instrumental in preventing even more retailers going into liquidation.

"However retailers can expect the worst of the recession to hit in 2010 when rising unemployment and structurally lower consumer credit will dampen prospects," Nygate said.

(Reporting by Mark Potter; Editing by David Holmes)

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