The next couple of months are going to be crucial for retailers as consumers actually feel the effects of increased taxes and loss of some benefits rather than just hearing about them in the media. The last couple weeks has seen a raft of profit warnings from some big high street names; Dixons, Mothercare, HMV (again) and Argos. A number of retailers have gone into administration; Oddbins, Officers Club to mention a couple. Marks and Spencer is issuing its fourth quarter results tomorrow and analysts are expecting a 6% fall in non food sales!
We have heard that councils are getting in tougher in collecting business rates as their own budgets are getting squeezed.
Retailers will be hoping that there is no rise in interest rates anytime soon as that maybe the last straw.
If you are a struggling retailer then please get in touch. There are ways of surviving these difficult times.