The director-general of the British Retail Consortium (BRC) has warned that shops across the UK could be poised for a difficult 2012, potentially threatening thousands of jobs.
Speaking to the Daily Telegraph, Stephen Robertson expressed concerns that conditions in the British retail market could be worse than they were following the initial onset of the global financial crisis in 2008. Retailers will this week begin reporting their performance over the festive season.
“This feels, talking to retailers, that there is more pressure than there was back in 2008. Back then there had been a relatively good run up until that point, and sales were certainly down, but margins were holding up,” he said. “This time, it's not just about the poor sales performance it's about the underlying profitability.”
His assessment was echoed by Jonathan De Mello, head of retail consultancy firm CB Richard Ellis, who speculated that between 30,000 and 40,000 jobs could be lost in the industry over the coming year.
Figures from market research group Synovate indicated that Brits spent around £2.6bn on December 27, as consumers returned to the shops en masse after Christmas Day and Boxing Day.
