Turbulent times lie ahead for shopkeepers, with sales reaching their lowest levels for more than ten years.

Figures released by the British Retail Consortium in April showed fewer people were parting with their cash as fears of a recession grew. The statistics were the worst since the consortium started keeping records in 1995.

There are more than 1,000 shops in Brighton and Hove, many of them independent outlets which experts fear will be the first to go unless the gloom lifts.

City centre manager Soozie Campbell, of the Brighton Business Forum, said the outlook was depressing.

She said: "Trading has been really slow for a long, long time and it continues to be slow. Brighton is suffering more than most places because of traffic congestion, the lack of parking and the price of parking.

"You notice it walking around, the roads are quieter and there aren't as many people in the streets."

Traders across Sussex believe it is the Brighton shops in particular which are feeling the pressure.

Ms Campbell is trying to persuade shopkeepers to sell over the internet, one of the few retail sectors where sales are increasing. She said the park-and-ride scheme planned for Brighton would also help.

She said: "The fact people can't get into town is affecting business. If this situation continues, we will lose the independent shops that make Brighton the place it is. It will be just like every other city."

Peter Stocker, secretary of the North Laine Traders' Association, said business had been down since last July.

He said: "It is a very difficult time. There is a general feeling of nervousness about the North Laine at the moment.

"A lot of traders don't have the resources to carry on in a recession. I'm not sure we're in a recession yet but there is a definite downturn.

"I know a number of people who have taken out bank loans to keep going but things have not improved, and there is only so much you can borrow."

Rents were rising in line with house prices, making them too expensive for the small businesses that made North Laine unique.

As less than ten per cent of North Laine shops were let by Brighton and Hove City Council, there was little it could do to ease the problem.

Mr Stoker opened his shop, The Workshop Pottery, in 1981 with £600.

He said it would cost £20,000 to open a shop now so traders had to make an immediate profit to stay afloat.

Trading at Brighton and Hove's biggest shopping mall, Churchill Square, has also been affected.

Marketing manager Peter Beard said some shops, such as HMV, had reported rising sales but others were suffering, some with significant drops in sales.

He said: "People are not spending, they are being very reticent about putting their hands in their pockets.

"The level of personal debt is making people hold back and, because Easter came earlier than usual this year, people were still recovering from Christmas."

Fashion retailers suffered because the bad weather had stopped people adding to their spring wardrobes.

The centre's branch of Marks & Spencer bucked the national trend and recorded a nine per cent increase in sales over last year for April while The Gadget Shop closed.

Several other shops have closed but new tenants are moving in.

Dee Crooks, spokeswoman for the British Retail Consortium, said: "Trading on the High Street is really tough, the most difficult conditions in living memory.

"We have had the largest drop in spending in the ten years we have been collecting data.

"Businesses are finding an increased cost base. We have been calling for a reduction in interest rates from the Bank of England to restore consumer confidence."

The consortium's figures showed trading at shops that were trading in April 2004 fell by 4.7 per cent while the fall for the retail sector as a whole, including shops launched in the past 12 months, fell by 1.3 per cent.

Nationally, people were only spending money on items they really needed and were not spending to replace kitchen appliances or furniture.

Fashion sales were down, with people buying accessories instead of major items. Spring shoes and sandals were left on the shelves and sales of children's shoes were down.

Last Wednesday supermarket Sainsbury's reported a crash in pre-tax profits to March, from £610 million last year to £15 million this year.

Marks & Spencer recorded a drop from £805 million last year to £618 million and Boots the Chemist reported an 11 per cent drop in profits.

May 26, 2005