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RETAIL: Christmas Sales Results “Not Pretty”
Listed under: News
Published: Friday, January 02, 2009
Despite its ups and downs, this has been a poor Christmas for retailers according to the British Retail Consortium (BRC). “We’ll see the full December figures in a few weeks, but they won’t be pretty,” comments British Retail Consortium director general Stephen Robertson. “Despite a last minute surge, it’s becoming clear that overall this has been a poor Christmas for retailers, as struggling customers cut back and traded down.”
Whilst recognising that some will have prospered – particularly those selling on the internet which saw strong growth this year – Stephen believes the heavy emphasis on value will have hit takings. “Discounts and promotions on a scale unprecedented for the run-up to Christmas, combined with weak sales, have put margins under severe pressure,” he states. “All retailers are looking to sharpen their performance to make sure every part of the business can meet changing customer needs as efficiently as possible.”
With increasing numbers of analysts predicting a hard recession and slow recovery, the BRC will continue to lobby MPs for more concessions for retailers in 2009. “ Remember, retail employs three million people, more than manufacturing. Government must recognise that every extra tax and regulation has an impact on prices, under-pressure customers and retailers.”
How was Christmas for you? Share your comments with us by emailing .(JavaScript must be enabled to view this email address) or calling us direct on 01206 505983
Whilst recognising that some will have prospered – particularly those selling on the internet which saw strong growth this year – Stephen believes the heavy emphasis on value will have hit takings. “Discounts and promotions on a scale unprecedented for the run-up to Christmas, combined with weak sales, have put margins under severe pressure,” he states. “All retailers are looking to sharpen their performance to make sure every part of the business can meet changing customer needs as efficiently as possible.”
With increasing numbers of analysts predicting a hard recession and slow recovery, the BRC will continue to lobby MPs for more concessions for retailers in 2009. “ Remember, retail employs three million people, more than manufacturing. Government must recognise that every extra tax and regulation has an impact on prices, under-pressure customers and retailers.”
How was Christmas for you? Share your comments with us by emailing .(JavaScript must be enabled to view this email address) or calling us direct on 01206 505983
The worst thing that the Government has done so far is to reduce VAT. What a farce that was, a huge amount of work for little benefit. It would have benefited the “hard working families” that Gordon Brown purports to support if he had raised the threshold of PAYE and actually put more money in to the pockets of the lower paid - but of course taht is far too simple a solution!
If the Govt wants to help retailers then how about doing the following
1 Reduce Business Rates on “in town” shops
2 Reduce car park charges for “in town” car parks
3 Start dealing with those who trade on-line and do not pay tax/VAT etc, especailly those trading on EBay
Along with the above suppliers need to support retailers in a much more active way. There are several suppliers that I no longer deal with because they compete directly against me with a retail website that even undercuts the RRP.