25/02/2009 - Shops cutting jobs at record rate
Figures show that 49% of retailers have cut their workforce in response to the recession - the biggest reduction on record.
According to a February trades survey by the Confederation of British Industry (CBI), retailers are slashing jobs at a record rate and figures show that it is the biggest cut since the quarterly survey began in 1983.
The poll also found that a further 45% of retailers have said they are planning to reduce their workforce in March this year as the economic downturn keeps consumers away from the high street.
However, the high street performed better than expected in the first half of February. Some 25% of businesses reported that sales volumes had declined year-on-year, but there was a marked improvement on the 47% recorded in January.
The figures were also up on the 52% of retailers who predicted that sales would fall during February.
Vicky Redwood, UK economist at Capital Economics, said: "While aggressive price cutting may have explained the strength of spending in January, the longer the rebound in sales continues, the more likely it is that consumers are just spending the cash freed up by falling mortgage payments and energy prices."
Copyright © Press Association 2009
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