Moorfields comment on why UK retailers struggle to agree on financial future
There seems to be conflicting hopes and expectations among UK retailers as they face into the financial future, with a new survey overshadowing some positive results for a few big names in Q1 2013.
WH Smith and M&S have both taken great pride in announcing profitable starts to the new year amid a backdrop of struggling companies and economic uncertainty.
However, a new survey from Rakuten indicates that just 7% of UK retailers anticipate sales growth this year. Perhaps more worryingly, 63% of those questioned actually believe that there will be a clear decline throughout physical stores.
Does size matter?
It’s difficult to escape the conclusion that the size of a company comes into the equation as they assess what the future holds. Understandable optimism among companies such as WH Smith and M&S will be of little comfort to smaller-scale retailers who are perhaps struggling in the current climate.
The emergence of online shopping has undoubtedly been a double-edged sword for retailers of all shapes and sizes. Although acting as an effective additional source of income, it has also drawn the focus away from physical high street stores in many cases.
The idea of ‘showrooming’ has been offered as one solution to this particular conundrum. This particular practice would see consumers use high street stores as a ‘showroom’ to determine what products are available from retailers before eventually making the purchase online.
Such a tactic may be exactly the sort of innovative measure that retailers need to embrace if they are to enjoy a fruitful financial future rather than a frightening one.
Business restructuring specialists
A number of businesses may find themselves in a financially distressed situation in 2013 as numerous economic indicators suggest the remainder of the year could present obstacles for companies across the UK.
Seeking advice from a company insolvency specialist could make a crucial difference in terms of how your company deals with the situation, companies such as this can provide practical solutions to numerous financial problems.