Flat sales for the Cold Rock franchise network in January has led Franchised Food Company’s managing director to predict tough times ahead for retailers.

Stan Gordon, the md of Franchised Food Company (FFCo) which owns Cold Rock Ice Creamery, Mr Whippy and Pretzel World, said shoppers had become frugal.

Consumers are being more mindful of the products they buy, even using the term ‘saving’ when questioned in research and retailers must take notice,î Gordon said. ñThe retail sector experienced a bounce from the Rudd governmentÍs $900 handout but the benefits of that stimulus package have since passed.

ñThe economy is settling into a slower grind as consumers return to saving their money. I think retailers can expect only modest sales growth throughout 2010, particularly as more rate rises loom.î

Gordon said Cold Rock sales had been impacted by several rate rises, recent wet weather across much of the country, unemployment and the governmentÍs 50 per cent tax incentive on capital goods purchased before 31 December 2009.

Despite these overall results for January Gordon said several Cold Rock stores had performed well, including a new store in Bendigo which became the networkÍs best selling franchise following its October launch.