Kelkoo claims that the economy could suffer to the tune of £1.5 billion.

The national postal strike is expected to start next week and will cost the economy up to £1.5 billion, a report claims.

Research by online shopping comparison site Kelkoo claims that lost orders and extra administration costs will hit retailers hard and have a detrimental effect on the UK's economic recovery.

Bruce Fair, managing director of the portal, said that the strike will hit consumers hard, and leave them with little choice but to explore alternative parcel delivery services, while businesses will also suffer at a time when many were expecting improved sales.

"The timing of the strike beggars belief. In one fell swoop it threatens to bring the postal network to a standstill, spoil the beginnings of the retail sector's financial recovery, increase prices for cash-strapped consumers and cause a further backlog," he stated.

In other news, retailer John Lewis has confirmed it is to work with alternative parcel delivery providers to ensure that customers receive the goods they have ordered.

Written by Mark Moore


Article Added: 13/10/2009 09:34:50