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Nearly a fifth of British retailers plan to reduce the number of people they employ over the next three months, as the main street continues to suffer from rising costs and costs. buy online
. The retail sector, the largest employer in the UK, has already fallen by nearly 3% in the last three months, according to the latest figures from the British Retail Consortium (BRC). The layoffs are three times higher than last year
. Helen Dickinson, chief executive of the trade body, said: "Retailers continue to reduce their labor requirements to reinvent the retail business." 19659002] Retailers remain cautious about the future, despite the renewed interest in trading the heat wave and the unexpected success of England in the World Cup.
Retailers who went bankrupt 2017-18
Toys R Us: 180 stores employing 3,000 people, collapsed on February 28th. Must £ 15m VAT, due on March 1st.
Maplin: 200 electronics stores and gadgets, founded in 1972, also failed on February 28.
Warren Evans: bedmaker
East: fashion brand with nearly 50 stores folded in January
Juice Corp: business behind brands like Elizabeth Emanuel and Joe Bloggs
Multiyork: furniture chain with 50 stores entered the administration in November.
Feather & Black: specialist of bedroom and bedding furniture with 25 outlets fall into the administration in November
Pressurized Retailers
New Look has debts of over 1 billion pounds sterling and has lost some of its credit insurance coverage, which protects providers in bankruptcy cases. a retailer. In the 10 months to Christmas, sales fell by 11% and losses reached £ 123m. The company intends to close 60 stores and change the mode, but it must fight to win back young consumers.
The Chinese owner of House of Fraser Sanpower, had to reap 25 million pounds to see the store through Christmas and his debt is classified as undesirable. The retailer is trying to reduce the size of its stores by 30% and has asked homeowners to reduce rents.
Debenhams a chain of 178 stores over 200 years old, four of its managers and considering closures to reduce costs. He warned that profits were hit by weaker than expected sales, and that profit margins also dropped due to the need to cut prices to compete.
The Confederation of British Industries (CBI) announced a strong second month in which 32% of retailers said sales were up, while 12% said they were down for a positive 20%. 8% of the 50 retailers who participated in the survey of the distribution activities of the employers' organization expected to reduce their orders more than those who expected to get more in the coming month. CBI chief economist Alpesh Paleja said: "Although the heat wave has boosted retail sales in recent months, we may be seeing signs of slowing down."
The retail sector is important. Continued real wage growth is holding back households and retailers are still facing deeper structural problems, such as digital disruption. "
Retailers are also facing rising overseas procurement costs as a result of the decline in the value of the pound, next to a jump in the rates of supply. At the same time, household spending remains weak, not benefiting from weak consumer confidence as the uncertainty surrounding Brexit continues.
The shift to online consumption has prompted street regulars, including House of Fraser, New Look, Marks & Spencer and Carpetright to close dozens of stores while trying to pump money into home delivery infrastructure. Collapse of the weakest channels, including Maplin, Poundworld and Toys R Us, have endangered at least 35,000 jobs in the streets.
The loss of jobs is perceived as bad news for The BRC reports that 70% of those work in the retail trade are women.
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