Jewellery specialist Beaverbrooks has cut back on spending after pre-tax profits fell from £4.6m to £200,000 last year.
The retailer has allowed staffing levels to fall 5% by natural wastage according to the Sunday Express in anticipation of another difficult year ahead.
Turnover for the group stayed level in the year to March 2009 at £82m.
Beaverbrooks managing director Mark Adlestone said: “I see 2010 as very challenging I fear there’s a huge correction about to happen , the double dip , so as far as we’re concerned we’re going to be very cautious.”
Beaverbrooks has 65 stores in the UK and employs 800 people.