Whilst HMV and Debenhams have become the latest major retailers to announce they are closing stores on UK high streets crisis is hitting retail operations across the UK.
One Company with over 100 branches yesterday in the furniture sector saw their commercial director send out an email message to all store managers stating ” this weekend is critical to the business” trying to motivate branch managers to salvage a bleak period as sales dry up compared to previous figures for the same time of year.
The rally call comes after a very bleak sales period since Boxing Day which is a dependable peak period for trading Companies.
Retailers who import products are suffering badly with currency rates blamed on Brexit, wiping at least 30 percent off the bottom line as they fear raising prices in tough markets.
It’s a catch 22 situation for major retailers who purchase products from the Far East especially as purchasing prices rise from the Far East are increasing whilst the current exchange rates sit low to what they once were.
Meanwhile the marketing managers have a fear of raising prices as footfall is far lower.
Whilst members of the public deny it’s Brexit and prefer to blame the Internet retail analyst Adam Higgins disagreed as he told the Euro Weekly News last night ” All these Companies all have internet developed websites and business is not coming through those channels either, the currency situation is taking hold now and retailers are making the mistake of not raising prices in a competitive market as they fear losing cash flow to support their daily operations, but in all businesses margin is king and the bigger they are the quicker they can fall”
” Large sized operations are like container ships, they are hard to stop and turn whilst smaller businesses can adapt quicker and make change to the wind” Higgins said.
” This year particularly consumers who are feeling the pinch are searching for bargains more than ever, but retailers are tied to the poor currency exchange rates , they should be raising retail prices, but they are trying to appease customers to generate revenues” he continued.
” I’m expecting to see large brand names to fall out the high street and retail parks in the near future as the retail sector is a blood bath right now”
” Take Steinoff the South African based Company who owned UK furniture stores, they couldn’t wait to offload it quick enough after large losses in the UK furniture market” Higgins further went on.
” It’s now a very critical period for many and I see the bloodbath continuing for some while yet”