Deja Vu

  laurie53 10:51 21 Nov 2008
Locked

Now don't get me wrong, no one is in any doubt that we are in the middle of a serious economic downturn, but having watched various retail organisations' doom and gloom on the news over the last few days it occurs to me that I've heard it all before.

Every year about this time we hear that it's going to be the worst "winter shopping season" ever, and every year, come January we hear of record breaking sales in December.

Bit like the "worst harvest ever" we get every year.

  oresome 11:44 21 Nov 2008

Are they crying wolf?

This time, I think it's for real. While the takings are down, the other costs faced by retailers have been spiralling. Trying to keep the turnover up by having a presence in all the new shopping malls must be an expensive business and the rent has to be paid even if the goods aren't selling. Credit insurers are pulling the plug on many retailers because they fear they will go bust.

DSGI (Dixons, Currys etc) is currently valued at only 10 weeks turnover.

Woolworths is worthless and M&S are having to hold sales before Christmas to shift stock.

If they're kidding us, it's a very convincing lie.

  interzone55 11:57 21 Nov 2008

I'm with oresome on this

having worked in retail for many years (but not anymore thankfully) I can tell that this "winter festival period" seems a lot quieter than the last few years.

I think anyone with a bit of cash under their mattress will be in for some major bargains come January (including Woolworths for £1)

  peter99co 16:58 21 Nov 2008

The reason people are holding back is that they are having to fork out for the Energy supplies and will only spend if the conditions improve. Many others are finding their mortgages are now holding them back. Not much point in buying if banks are pulling the rug from under your feet.

  peter99co 17:09 21 Nov 2008

Mortgage debt forces thousands to sell up

click here

This could be part of the reason for less shoppers.

  MAT ALAN 19:42 21 Nov 2008

Now don't get me wrong, no one is in any doubt that we are in the middle of a serious economic downturn, but having watched various retail organisations' doom and gloom on the news over the last few days it occurs to me that I've heard it all before.

Every year about this time we hear that it's going to be the worst "winter shopping season" ever, and every year, come January we hear of record breaking sales in December.

Bit like the "worst harvest ever" we get every year.

Deja what!!!

  dagnammit 05:20 22 Nov 2008

Having worked in retail for years (and still in it) I can tell you the downturn is real.

Customers are not spending....

The peak was the December before last (2006) up until then sales were increasing and increasing, but 2007 saw a slip of I think 5%. Now with heavy advertising, cut prices and customers spending less in general. It means almost no profit!

Who do I blame?

Media, the Banks & The Government.

It was never going to work selling houses at higher and higher prices back to each other, was it.

Government ignored warnings, raised taxes too high, spent (wasted) too much money and are now borrowing out of expensive thin air. Banks were greedy and the media stir it all with a big wooden spoon.

  martjc 06:44 22 Nov 2008

...In Britain, we pay far too much for everything. The shops ca afford to sell their goods much, much cheaper than they do.
When I see a sign in a shop saying 'buy one, get one free' or 'Three for two' I think "Wow, it's come down to somewhere near what we SHOULD be paying for it."

Just think about it.

  spuds 12:04 22 Nov 2008

I was in our 'major' town centre yesterday, and the increase of closing down sales,reduced prices and bailiff notices in windows have been the worse for many years.

But was the owners of these ventures more fools than entrepreneurs, because I could never see the point of opening the same type of business opposite or next door to someone plying for the same trade or clientèle. Even the 'coffee shops' are opening earlier,in the hope of catching the big breakfast takers. Seeing glum looking staff who outnumber customers can not be a very good sign. Increased council tax,utility bills and property rents will all have serious effects for any trader, whether big or small.

Even the banks and financial institutions, who have accepted large financial hand-outs from the public purse, are still causing major concerns for some business's, due to their methods and practises. When a government as to suggest that they will take drastic action against the banks,because the banks are not showing any sympathy, then something must be seriously wrong with the way the world is being manipulated.

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