Retailers pessimistic as demand slows

05-08-2008

Retailers pessimistic as demand slows
The state of Britain's retail sector has deteriorated significantly and is set to get worse, a think tank said.

A group of industry figures, the KPMG/SPSL Retail Think Tank (RTT), which tracks the retail sector have produced a retail health index for the past two years and have found this quarter to be the worst since they started.

The RTT said the index has slipped three points from the second quarter to 95 and is set to fall at a faster rate over the next quarter to 91.

Helen Dickinson of KPMG said: "Quarter two saw increased negative impact of demand, margins and costs; all of which are expected to worsen in quarter three.

"The choices of retailers as to how they meet these challenges are beginning to seriously narrow and we cannot currently see any light at the end of the tunnel."

The RTT blames the slowdown on a decline in demand, rather than in margins or costs.

The fear of unemployment will make as big an impact as actual unemployment on levels of demand as consumers cut back on spending.

Clothing retailers will be the worst affected, with food retailers the least hit, the group predicted.

However, food retailers who have, to date, been more successful in passing on increased costs, will find this increasingly difficult going forward, the RTT forecasts, prompting fears of further hikes to grocery bills.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure