Retail bosses are calling on the newly re-elected government to lighten the burden of regulation on the sector.
Commenting on the general election result, Dr Kevin Hawkins, director general of the British Retail Consortium said: “Retailers are currently facing the most difficult set of trading conditions in living memory.
“Consumer confidence is weak, price competition is fierce, retailers' cost base is inflating and profit margins are under pressure.
“While a speedy reduction in interest rates is essential to reverse the downward trend in consumer confidence, we expect many of the present trends to continue.”
He said the key to retailers remaining profitable is higher productivity and more innovation.
“Retailers are looking for a regulatory framework, which helps them deliver these goals. The government has already promised to lighten the burden of regulation and we now expect it to deliver.
“Specifically, we want to see rapid progress in implementing both the Hampton report and the BRTF report "Less is More" which the chancellor announced with his last budget.
“We look forward to maintaining and extending our constructive dialogue with ministers and civil servants to deliver policies and regulatory changes which will help our members improve their productivity, encourage them to invest and create more jobs.”
The BRC said it would work with government to deliver its policy priorities which includes issues such as the national minimum wage, preventing further above-inflation increases, retail crime, to toughen penalties and the issue of nutrition and obesity to tackle the problem in a sensible way.
