Rising unemployment will hit the retail sector as cash-strapped consumers spurn the high street, according to retail recruiters.

Peter Burgess, director at Retail HR, told Recruiter: “Retail sales have held up very well and this is surprising. 

“However, the real downturn will occur when unemployment rises. 

“All economists agree that we will have a sharp rise in unemployment over the next 12 to 18 months as employment is always the last indicator of a sick economy. 

“The loss of jobs or the fear of losing a job will impact on retail sales in the coming 12 months.”

Kate McCarthy, managing director at McCarthy Recruitment, adds: “Anything that affects the economy ultimately affects retail. Unemployment is likely to go up until 2012 and will affect the profitability of retail stores.

“However, people still want to improve their homes and might look for cheaper  alternatives and certain retailers will do well.”