Post strikes seen costing £1.5 billion

LONDON (Reuters) - Nationwide postal strikes could cost the British economy 1.5 billion pounds and deal a blow to online retailers, according to analysis commissioned by shopping comparison website Kelkoo.

Stoppages planned by workers at state-owned postal firm Royal Mail are likely to land a 270-million-pound hit on struggling retailers, with the bill for Internet retailers accounting for 220 million of that, Kelkoo said.

Royal Mail workers voted overwhelmingly last week for a nationwide strike, escalating a dispute over pay and conditions which has caused widespread disruption to postal services through regional stoppages.

"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 which already stands at some 30 million items," said Bruce Fair, managing director of Kelkoo UK.

Christmas and January sales are critically important for retailers, accounting for about a quarter of annual retail sales over a 10-week period.

A poor Christmas trading season, as seen last year, led to 20 major retailers going into administration, the loss of 40,000 jobs, and shop voids rising to 10 percent in February 2009," Kelkoo said.

(Reporting by Mark Potter; Editing by Dan Lalor)