|
The Worst is Yet To Come, According to John Lewis Spokesman
Listed under: News
Published: Thursday, March 04, 2010
The chairman of one of the most prestigious retail outlets in the world has dubbed the recent rise in consumer spending nothing more than a 'false dawn', predicting that the country is in for much stormier times, before the economy eventually picks up.
Charlie Mayfield, the chairman of the John Lewis Partnership, which owns retail giant John Lewis and the supermarket chain Waitrose, has warned retailers that sales are likely to drop significantly following the general election this year, when tax rises, public sector spending cuts and potentially higher interest rate costs see consumers cut back on their spending once again.
Speaking to The Independent, Mr Mayfield says, “The second half of the year will be the time when we start to see these things coming in and experience tougher trading conditions. I think we're in a bit of a false dawn and believe we are in for a more difficult time.”
He adds, “There has been the biggest crisis in global financing ever and getting out of it has cost an eye-watering amount of money, and we simply haven't started to pay the price for that. The world has changed and wistfully hoping it will go back to where we were ten years ago is a fool's errand.”
Stewart Binne, non-executive president at Aurora Fashions, which owns high-end clothing brands Karen Millen, Cost, Oasis and Warehouse, agrees the recession is far from over, telling the paper, “The young market is very difficult and if you look at our fashion brands, there is clearly a difference between the young fashion brands and others, which are performing very well. Young people in the UK are not shopping and there are now one million of them unemployed.”
Commenting on how this is likely to affect the sector over the next year, Mr Binnie says, “We are all waiting with bated breath to see how the spring season proceeds.”
Do you think the worst is over? Email your thoughts to .(JavaScript must be enabled to view this email address)
Charlie Mayfield, the chairman of the John Lewis Partnership, which owns retail giant John Lewis and the supermarket chain Waitrose, has warned retailers that sales are likely to drop significantly following the general election this year, when tax rises, public sector spending cuts and potentially higher interest rate costs see consumers cut back on their spending once again.
Speaking to The Independent, Mr Mayfield says, “The second half of the year will be the time when we start to see these things coming in and experience tougher trading conditions. I think we're in a bit of a false dawn and believe we are in for a more difficult time.”
He adds, “There has been the biggest crisis in global financing ever and getting out of it has cost an eye-watering amount of money, and we simply haven't started to pay the price for that. The world has changed and wistfully hoping it will go back to where we were ten years ago is a fool's errand.”
Stewart Binne, non-executive president at Aurora Fashions, which owns high-end clothing brands Karen Millen, Cost, Oasis and Warehouse, agrees the recession is far from over, telling the paper, “The young market is very difficult and if you look at our fashion brands, there is clearly a difference between the young fashion brands and others, which are performing very well. Young people in the UK are not shopping and there are now one million of them unemployed.”
Commenting on how this is likely to affect the sector over the next year, Mr Binnie says, “We are all waiting with bated breath to see how the spring season proceeds.”
Do you think the worst is over? Email your thoughts to .(JavaScript must be enabled to view this email address)
