Massive discounts on the high street are not working
Recent evidence would suggest that the large number of substantial discounts on the high street and online are not working with consumers willing to risk further delays in spending in the hope that prices will be reduced yet further. While this is a very risky game by the UK consumer it would appear to be working with the frequency and levels of discount sales starting to increase as we approach the final run-in to Christmas. So will this bailout the struggling UK retailers?
Even though increased liquidity and improved sales number will have a positive impact on cash flow many UK retailers have also seen a decimation of their profit margins with many trading just to stay alive. The many retail associations around the UK are all suggesting that a substantial number of companies will go under after the New Year with a suspicion that banks are allowing them to trade through the New Year period in order to increase income.
When we see the likes of Marks & Spencer and BhS resorting to substantial discounts to attract customers then it is plain to see that life on the UK high street is very very difficult.
Share this..
Related stories
HSBC looks to reduce branch numbers
HSBC is coming under immense pressure after campaigners unearthed plans to close an additional 17 branches on top of the 37 which have been closed this year already. When you also consider the 31 closure last year and a confirmed 16 closures for January and February 2010, the HSBC local banking network is under pressure. Estimates suggest that around 100 branches will close between now and the end...
Read MoreECB forecasts no deflationary pressure in the short term
In a move which has been welcomed by investment markets around Europe, the ECB (European Central bank) has confirmed that in its opinion the Eurozone is not at risk of deflationary pressure over the next few months. As we covered on a recent post, deflation is a very serious situation which can in some circumstances lead to a severe recession. As prices continue to fall, companies look to cut cost...
Read MoreInsider dealer jailed for eight months
A former general counsel to telecoms company TTP Communications was today jailed for three months in connection with a long-running insider dealing investigation. This is a story we covered a few days ago whereby the solicitor allegedly passed on confidential information regarding TTP Complications to his father-in-law. His father-in-law then acquired shares in the business crystallising a substan...
Read MoreBudget Headlines : Smaller oilfields to be supported by government
Smaller oilfields to be supported by government...
Read MoreUK government to issue damning green taxation report
The UK government will this week issue a report on green taxes in the future which will make frightening reading for many consumers and businesses in the UK. All in all the report, which was commissioned by the government, suggest that UK businesses and households up and down the country should pay an additional £150 billion in "green taxes" over the next decade.
In a nightmare sce...