Redhotcurry.com logo

 
Archived Articles
Year 2009
  Year 2008
  Year 2007
  Year 2006
  Year 2005
  Year 2004
  Year 2003
  Year 2002
 
Business Guides
Starting Your Own Business
  Starting A Catering Business
  Creativity & Business
  Working For Yourself
  Flexible Working
  Attracting Customers
  Business Marketing Tips
 
Factsheets For Retailers *
Business Planning
  Cashflow Management
  Future of Retail
  The Retail Multiples
  Anila's Authentic Sauces
  Halal Food Opportunities
  Stock Contol
  Visual Merchandising
  Security: Your Business
  Security: Business Premises
  Customer Care
  Getting More Customers
  Using The Internet
* Courtesy of ABi Associates
 
Business News 2009
Business News->Over 5,000 retailers to go 'bust' next year
Over 5,000 retailers to go 'bust' next year

(1 September 2009)

Closing Down signThe retail sector will dwell in the doldrums for longer than other industries, with the number of business failures rising in 2010, according to the latest Industry Watch report by accountants and business advisors, BDO Stoy Hayward LLP. Going forward, rising unemployment will likely cause a decline in consumer spending in 2010, driving up insolvencies. In tandem, lower wage growth and reduced consumer credit will also contribute to the increase in business failures, with 4,630 expected in 2009 rising to 5,070 in 2010.



To date consumers have shown remarkable resilience in the face of the recession. Retail spending has held up unexpectedly well throughout the downturn; Office of National Statistics data shows that during the second quarter retail sales volumes were up by 0.7 per cent quarter-on-on quarter and 1.3 per cent compared to the second quarter of 2008. Despite this, many retailers have paid the price of heavy discounting which has left profit margins painfully thin.

Tony Nygate, Retail Business Restructuring Partner at BDO Stoy Hayward, said: “Unemployment has risen less than the economic contraction originally suggested, with a flexible labour market allowing employers to reduce hours and wages rather than make redundancies. These factors have helped maintain retail spending surprisingly well in the face of recession and have been instrumental in preventing even more retailers going into liquidation.

“However retailers can expect the worst of the recession to hit in 2010 when rising unemployment and structurally lower consumer credit will dampen prospects. That means retailers will face a particularly tough 2010, with our research predicting over 5,000 retailers will go out of business next year.”

Top
 
Business Profiles
Asian Pharma Families
  Lord Karan Bilimoria
  Kamel Hothi
  Mike Jatania
  Bindi Karia
  Lakshmi Mittal
  Sir Gulam Noon MBE
  Dr Chai Patel
  Mayank Patel
 
Google Ads
 
 
 
 
  © 2001-2009. Copyright of Redhotcurry Limited. All Rights Reserved.
Home | About Us | Press Room | Contact Us | Sitemap
USA/CANADA:
USA Site News | Business | Films | Galleries | Music | Theatre
UK NEWS & BUSINESS :  UK Site News | Business | Money | Property | Views
ENTERTAINMENT : Books | Festivals | Bollywood | Bollywood News | Bollywood Films | Films | Galleries | Museums | Music | Parties | Theatre | Television
LIFESTYLE : Culture | Eating Out  | Food & Drink | Health | Horoscopes | Home Decor | Garden | Shop | Style | Sports | TravelWeddings
MEMBER SERVICES eGreetings Cardsenewsletters | Wallpapers | Sign-up
Terms of Service | Privacy Policy | Terms of Contribution | Community Standards