Retail sales increase, but only 9% of retailers say profits have increased
Frances Coulson, R3 President comments:
“For those retailers that survived last month’s quarter day, today’s increase in the retail sales values and volumes represents a ray of light. However, iconic brands such as Aquascutum and popular retailers such as Game both fell into administration in the last month, and it is unlikely to stop there. When R3 members were asked to choose which sector they think will experience the greatest number of insolvencies in 2012, 50% chose wholesale and retail above other sectors.
“Recent R3 research has found that only 9% of retail businesses say their profits have increased over the last quarter, compared to a cross sector average of 24%. Furthermore, when asked about sales volumes only 16% of retailers say they have seen an increase, compared to an average of 25%.
“In spite of today’s figures, retailers are still falling well behind other sectors, as supply outstrips demand for products. They are suffering in the face of competition from online retailers and consumers’ dwindling disposable income. Struggling retailers need to consider their business model and its long term viability if. It is vital that any business that is concerned about its future take professional advice before it is too late.”
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Notes to editors:
- R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
- R3 comments on a wide variety of personal and corporate insolvency issues. Please contact the press office, or see www.r3.org.uk for further information.
- R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
- R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.
R3 Press Office