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Tuesday, 20 December 2011 |
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Ret ailers are preparing themselves to face a tough new year, which is likely to be plenty of profit warnings and not as good as expected prospects of growth. Weak consumers and a warmer than ever autumn
also stressed the gloom among retailers.
Reta il experts at Deloitte don´t seem any more optimistic than the own retailers, as the business advisory firm advanced that whilst consumers tend to display remarkable resilience at this time of year, the gradual squeeze on disposable income means that a flat Christmas is the most positive outcome UK retailers can expect, Investor Today published. Deloitte expects no sustainable growth in retail sales until 2013 as soonest.
“Christmas 2011 promises to be the most important moment in retail trading we have seen for many years,” said Richard Hyman, strategic retail adviser to Deloitte. “Demand has been softening throughout the year as the impact of the government’s debt reduction strategy has started to filter through to the pockets of consumers. Therefore, it is very difficult to see where sales growth will come from this Christmas,” concluded Hyman in November.
In a similar tone, JP Morgan Cazenove analysts said in their Christmas trading preview that “this year the combination of a weakening consumer, unseasonal weather, heavy promotional activity, weak footfall and what we view as still too high estimates is causing us more concern.”
Image: Ralph Lauren snowflake sweater
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