The summer always sparks a retail revival – fact or fiction?
The idea that the summer can be relied upon to kick-start a revival for struggling high street stores is a common theme that can be heard at this time of year.
Judging by the most recent figures available, it certainly appears as though they could do with a catalyst to ensure a strong finish to the current season. The latest Distributive Trades Survey from the CBI (Confederation of British Industry) suggests that sales volumes for UK retailers were stagnant in the 12 months up to June 2013.
General order numbers remained similar to the period exactly one year ago, frustrating a number of retailers who had been confident of growth.
What does the immediate future hold for retailers?
So, are retailers right to be confident that the remaining summer months will bring about genuine reasons to be positive?
Barry Williams, the chair of the CBI Distributive Trades Survey Panel, looked at what the results mean in a current context and what the rest of the summer could potentially bring for retailers who feel they are struggling at the moment.
“Despite an improvement in British weather conditions, retailers will be disappointed they didn’t see the return to growth they expected in June – but the forecast is looking good for July when it’s hoped retail sales will return to form.
“However, with the cost of living still much higher than pay growth, family spending power is likely to remain fragile through the summer.”
A number of major retailers have turned to insolvency practitioners within the last 12 months as they have struggled to function in the current climate.
Many who are currently working hard to remain competitive will certainly be hopeful that the remainder of the summer does offer some much needed good news.
Business restructuring specialists
A number of retailers may find themselves in a financially distressed situation during the rest of 2013 as numerous economic indicators suggest the remainder of the year could present obstacles for SMEs across the UK.
Seeking advice from a company insolvency specialist could make a crucial difference in terms of how your company deals with the situation, companies such as this can provide practical solutions to common financial problems.