Boxing Day sales are no more
More and more retailers in the UK are bringing forward their "Boxing Day sales" and in effect offering massive discounts and announcing massive promotions ahead of Christmas day. While it is common knowledge that the UK retail sector has been struggling for some time, each and every retailer in the UK is now trying to squeeze as much money as possible from consumers. We are seeing companies such as H&M, Gap, Warehouse and Oasis already offering 50% discounts on many of their lines.
While profit margins are obviously impacted by these massive price reductions in the short term, of more importance at the moment for many retailers is simple cash flow. The need to basically have enough liquidity within their operations to fund future stock purchases is proving more vital than short-term profitability. However, there is no doubt that we will see a number of well-known companies biting the dust in early 2010 as the banks continue the process of cleanup their own loan books and balance sheets.
It will be interesting to compare the performances of the larger UK retailers such as Debenhams, BHS and Marks & Spencer against some of the smaller niche market players who must be struggling in the current economic climate.
Share this..
Related stories
UK unemployment rises by 137,000
In the three months to October the unemployment rate in the UK increased by 137,000 and now stands at 1.86 million. The 2 million mark is not very far away and should be reached in early 2009 or before depending upon how the economy performs over the next few months. However, as we have covered of late, the 2 million mark could only be a stopping point with many experts predicting UK unemployment...
Read MoreHas the ongoing recession pushed the UK closer to Europe?
In a move which is sure to court controversy in the UK, a number of EU senior ministers have been quoted as suggesting the UK is ready to adopt the euro. It seems as though ministers in Europe are using the ongoing recession to try and hammer away at the UK door which has been firmly closed for many years. There are concerns that the UK government may well be susceptible to a new welcome into the...
Read MoreUK government pledges help for Corus workers
The UK government has come out in support of the 2,500 Corus employees who lost their jobs earlier this week with a commitment to a support package to try and get as many of them back into work as possible. The government announcement has been backed up by Euro MP Glenys Kinnock who is strongly in favour of a support and benefits scheme designed to offset the obvious serious impact of these job lo...
Read MoreUK retail sales stagnant in September
In a disappointing development for those who believe the UK recession is now over it has been revealed that UK retail sales were stagnant in September with consumer spending less on food and clothing as they continue to tighten their belts and save as much money as possible. While this is the second month of stagnation in retail sales, after a number of better-than-expected figures in previous mon...
Read MoreLloyds bank decides to pursue £15 billion rights issue
While only a few weeks ago it seemed certain the Lloyds bank would ask investors for £15 billion to avoid the UK government's toxic asset insurance scheme, the subject has been fairly quiet over recent times. However, market sources claim that Lloyds bank is currently "sounding out" institutional investors regarding a massive fundraising which could be announced in the short term.
...