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2012年12月27日星期四

Retailers facing an even tougher year as the squeeze on consumers continues

Retailers facing an even tougher year as the squeeze on consumers continues


Britain's battered retailers are bracing themselves for even worse trading conditions in 2013 despite glimmers of light during the winter sales.

High street chains will be hit by a triple whammy of gloom as austerity measures drag down consumer confidence and squeeze real incomes further, a report has warned.

An undersupply of retail property could also curb plans for larger store expansions, research from accountant KPMG and Ipsos shows, heaping further pressure on retailers to develop innovative schemes to drive sales and survive.
Anti-climax: Despite impressive Boxing Day sales, the high street is bracing itself for more gloom.
Anti-climax: Despite impressive Boxing Day sales, the high street is bracing itself for more gloom.
The current year has been one of the worst ever seen for store chains as established household names disappeared.

Electrical group Comet bit the dust after falling into the clutches of private equity. JJB Sports announced plans for a pre-packed administration, while Clinton Cards collapsed and 160-year-old Aquascutum, which had dressed Winston Churchill and the Queen Mother, failed.

The focus is now on music chain HMV, which is in intensive care having warned it is likely to breach key loan agreements with its banks next month.

The market for music and video is set to be one of the biggest losers next year shrinking by 6.3 per cent.

The internet is expected to account for 80.1 per cent of all music and video sales in 2013 as more people opt for cheaper prices online and digital streaming grows in popularity, says research firm Verdict.
 

HMV’s future will be decided by the owners of its debt, rather than its suppliers, which include American vulture fund Apollo Global Management which snapped up 10pc of HMV’s loans and plans to own more.

Verdict shows that UK retail  is set to grow by 1.8 per cent in 2013 with total spending hitting £300.7billion.
This is nowhere near pre-recession growth levels, but it is the highest rate since the downturn began.

But the research firm says  this is largely due to rising prices.Online retailers will also need to target shoppers over the age of 55 who have more to spend than hard-up twenty-somethings.

As the rate of empty shops in town centres has reached a new high of 11.3 per cent, the British Retail Consortium is also asking MPs to prioritise listening to local businesses to help halt High Street decline.
BRC director general Helen Dickinson said: ‘The Autumn statement did not include a pledge to freeze business rates next year, but there is still time for the Government top do the right thing.

‘Another steep rise would pose a serious threat to vulnerable town centres and mean fewer jobs, especially for young people.’

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