The state of health in the retail sector in the fourth quarter of the year could deteriorate further, it has been claimed, as year-on-year sales values drop.
Members of the KPMG/SPSL Retail Think Tank said that despite the possibility of further interest rate cuts in the near future, consumers could still be hit by the aftermath of the banking collapse.
Yet the panel said that retailers in the non-food sector are likely to be hit harder than those in the food sector.
The British Retail Consortium has also today said that conditions for retailers are getting tougher.
Professor John Dawson of Edinburgh University, who summarises the reports, said: “However, those wily retailers who constantly monitor and modify their entire operations, both online and in store, will come out of this difficult period fitter and stronger.”
He added that this is make-or-break period for retailers, and the ones that fail will be replaced be retail “gurus who will flourish”.
A similar pessimistic view was revealed when the last think tank findings were released in August.
Today’s release from Verdict Research has found that shoppers will spend more at Christmas, but on fewer products.
Are you seeing a downturn in business? Are these findings a true representation? Have your say below.
