The research also revealed that consumer spending in the run-up to Christmas has been stronger than expected. However, BDO partner Rupert Eastell warned that bullish turnover figures can belie a healthy balance sheet and some retailers will uncover serious problems when they take stock of their finances in the new year.
'Sales may not be worse than they were last year, but this could be because retailers are selling at lower prices,' he said.
The study predicts the furniture market will pick up next year as the housing market becomes more buoyant. Eastell said that although some big players in this sector have gone bust, including Courts and Furnitureland, consumer spending has moved elsewhere.
The research also forecasts that high street electrical retailers will face increased competition from online players. Fierce competition has levelled prices and shoppers view the convenience offered by online shopping as a point of difference.
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