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UK Retail Downturn Only Just Begun
LONDON, January 8 /PRNewswire/ -- Despite some better than expected figures this week from leading British retailers such as Debenhams and Next, retail analyst Nick Bubb at Pali International says the outlook is both "gloomy" and "depressing" and the downturn has only just started. In an interview on Cantos, the financial broadcaster, Mr Bubb said UK retailers had seen two good weeks over Christmas but that full price retailing had died. "That's a very worrying development at a time when prices are going to start to have to go up again in non-food. Unemployment is a serious worry for many consumers and the housing market is in freefall. So I fear the downturn has only just begun." Mr Bubb said with confidence sliding away and low interest rates seeming to have had little impact on spending the second half of the year would be disappointing with the gloom to continue well into 2010. Looking at the outlook for listed retailers he said small fashion retailers looked vulnerable while large food retailers - those with 'massive clout' such as Tesco and Sainsbury's - were better placed. "They're extremely good at hyping up what they do in terms of price promotions, but they never see margins fall, so they're in a pretty good position in terms of the relative strength of retailers versus suppliers." The interview and transcript are available now on http://www.cantos.com. It's free to view. All you need to do is register at http://www.cantos.com. Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. If you would like to contact us, please email enquiries@cantos.com or phone +44-207-936-1333.
