Brighton and Hove business leaders describe December as a disaster

Business leaders in Brighton and Hove have warned traders to expect a tough year after a disastrous December.

And they warned that stores such as HMV, with branches in Western Road and Churchill Square, Brighton, may find it hard to stay open.

The month leading up to Christmas and the sales afterwards are usually the most important time in the retail calendar.

But the snow and ice hit sales for hundreds of shopkeepers from the chain stores to the smallest independents, the Brighton and Hove Business Forum said.

The bad weather, though, was only part of the problem.

Analysing pre and post Christmas trading, the business forum said: “Most expect trade to be between 5 per cent and 10 per cent down on 2009 and many will probably wish that it was only 10 per cent down.

“The coming year will probably see an enormous shakeout for both multiples and independents as the combined effect of a rise in VAT, an increasing number of unemployed, inflation adding to everyday living expenses and stagnant disposable incomes take their toll.

Disaster

“In addition, a widely predicted fall in house prices may well be the straw that broke the camel’s back for households already under pressure.

“None of this is likely to encourage consumers to go shopping.”

The business forum said: “The December trading period was a disaster for most retailers and 2011 will be one of the toughest years on record.

“Some retailers went into the Christmas period already weakened from poor trading in 2010.

“Game, JJB and Clinton Cards are all going to be under pressure next year and it seems unlikely that two HMV stores will survive in Brighton city centre (Western Road and Churchill Square) when a lot of the market for DVDs, CDs and books has gone online.

“Last month the group that owns HMV and Waterstones reported a pre-tax loss of over £43 million after a 6 per cent decline in sales.

“Similarly JJB Sports only staved off going into administration by raising an emergency £31.5 million from shareholders on Christmas Eve and 2011 will be the most perilous year in its history.”

The company – which has a store at the Goldstone Retail Park in Old Shoreham Road, Hove – is reported by the Financial Times to have since asked for £50 million more from The business forum said: “The smaller independents, the mainstay of Brighton’s retail offer, will be similarly weakened by the loss of business due to bad weather after a generally weak 12 months of trade.

“For many it will be a case of devising a business plan that simply keeps them alive during 2011 until a pick up improves their fortunes.

“Being located in Brighton, which continues to attract visitors, is probably their biggest asset but they will be relying heavily on good visitor numbers during the summer.”