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6th August 2008
Wholesaler sector set to struggle in coming months
The latest Wholesaling Review from Barclays Commercial has painted a gloomy picture of the sector and predicted things could get worse as retailers continue to struggle.
According to the report, the wholesale sector's output dropped by 1.1 per cent in the year that ended in May. This is the first decline wholesalers have recorded since July 2005.
In particular, the report said that wholesalers of durable household goods and agricultural machinery had already experienced sharp falls in sales.
Looking forward, the research suggested that continued pressures on consumer finances in the country would reduce retail sales and therefore impact wholesalers.
It noted: "Against this backdrop, we expect growth in wholesaler output to slow to one to two per cent in 2008.
"Those wholesalers supplying consumer and durable goods, as well as builders' merchants, are likely to be impacted most by the expected slowdown."
Earlier this month, the problems that UK wholesalers are currently facing were highlighted when London-based firm S Gold and Sons confirmed that it had gone bust.
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