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Retailers to face 'testing times' ahead

Jan 08 2008

Retailers of all sizes, especially SMEs, are facing a tough six months ahead due to the current pressure on customers' personal finances, say business experts.

The British Retail Consortium (BRC) says the economy is still feeling the effects of the interest rate increases and, despite a recent interest rate cut back in December, has called for a further series of cuts.

Richard Dodd, head of media and campaigns at the British Retail Consortium, says: 'We are clearly going in to a slowdown. The rate cuts ought to help to prevent that turning in to recession, but a slowdown is bad news for retailers of all sizes.'

The main problems that SMEs are facing are from a string of rising costs which include fuel, utility bills, tax and wages.

On December 6th 2007, the Bank of England cut UK interest rates to 5.5 per cent from 5.75 per cent.

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