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13 February 2008
Retail sales set to face 2008 dip
Slower spending rates for the rest of the year could cause retail sales to suffer a dip, new research has revealed.
According to figures produced by Verdict Consulting, a lack of demand amidst growth in retail space could mean trouble for retailers and, with sales likely to fall, wholesalers may find their orders dwindling.
Neil Saunders, consulting director with Verdict, revealed that the change in conditions could lead to some smaller retailers struggling to survive.
He said: "Unfortunately for retailers, the laws of supply and demand are absolute: demand from consumers is falling at a time when retail supply in the form of new space is increasing.
Mr Sanders added: "The bottom line is that there just isn't enough growth to go around between existing physical retailers, new space and the internet. Something, somewhere, has got to give."
Verdict's research also revealed that retail spending would grow by an average of 2.8 per cent per year over the next ten years. The figure for the previous ten years was 4.9 per cent.
(c) 2008 Adfero Ltd.
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