London shops find Christmas cheer

Retailers in the Capital are more optimistic about the growth of their own business over the holiday season than they are about the overall economy, a new survey has found.

Research from the London Chamber of Commerce (LCCI) reveals that two-thirds of retailers are confident sales will improve throughout December despite continued surveys showing a stagnant economy.

Four-fifths of shop owners said they believe they are doing better than many other firms in their trade, and very few have made any moves to reduce staff or curtail recruitment.

Firms in the hospitality sector are equally buoyant. Four-fifths believe their sales will grow over the holiday season, while three-fifths of restaurateurs and hoteliers said they are outperforming their competitors.

"These findings are better than we expected and suggest that this year's Christmas period may not be as bleak as some forecasts have led us to believe," said Colin Stanbridge, chief executive of the LCCI.

Nevertheless, Stanbridge advised companies in the retail and hospitality sectors that the reality of the current economy is hard to ignore and suggested leaders take several policy measures to ensure successful trading.

He called on London mayor Ken Livingstone to suspend the congestion charge for the final, full week before Christmas, promote early-morning weekday shopping in the Capital's main shopping districts, train retailers to help them develop better marketing skills and encourage more independent shops to start trading online.

Recent surveys have shown that while high street shops have struggled throughout the year, online stores have thrived.

Two-thirds of retailers surveyed by the LCCI said they have reported no year-on-year declines in their online sales.