How can struggling companies in the retail sector survive the breakdown?
A spate of recent statistics have indicated that the UK retail sector is in a notably tight spot at the moment as companies of all shapes and sizes battle to survive in the current economic climate.
One of the most startling statistics to have recently emerged was from a study by Rakuten, the leading e-commerce website, which suggested that 63% of retailers surveyed anticipate that sales in physical stores will probably decline in the coming year.
So, what can UK businesses do to rally against this decline and survive in these strained times?
Adjust rental payments from quarterly to monthly
If you are renting your business premises it is very important to have a rental agreement in place that suits your current cashflow situation. If you need to renegotiate your existing contract, from a quarterly arrangement to a monthly one for example, to match your other outgoings then it could be a financially shrewd move.
Tighten controls on stock management
It is essential for any company to ensure that their budget is being put to the best possible use. For many companies, it is entirely possible that you will have funds tied up in excess stock that you may struggle to sell down the line. Reviewing your structures in this area could lead to significant savings on funds that could be put to better use elsewhere.
Ensure motivation amongst your staff
Your employees are the first point of contact with existing and potential customers and they are, as such, the most effective method you have for promoting your brand in a positive light. Fostering a strong sense of motivation among all staff members is pivotal to ensuring that they reflect your company in a positive light and also work as hard as they can to drive the business forward.
An insolvency practitioner can assist business leaders in identifying and implementing solutions in terms of finance, recovery and risk management. We specialise in providing practical solutions to the numerous financial problems that can arise in the current financial climate.