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Welcome to a grim 2009
From what you read, the effects of the downturn on the retail sector seem to be largely related to prices and the need for retailers to discount in order to attract customers. Less seems to have been made of job losses.
Bt Glynn Davis
Maybe this is because the bad news has been largely masked by the supermarkets that have been able to communicate the positive news that they continue to create jobs as they g
Yes, the Woolworths closure led to the news of serious job losses but the reality is that this is clearly not an isolated incident. The scores of smaller operators that don't necessarily warrant individual coverage make up a significant number when considered cumulatively.
Maybe more recognition will now be given to jobs following the news that Sainsbury's is to lay off 200 staff from its head office. This comes on the back of the announcement from Marks & Spencer that 1,200 staff will go. Head offices will probably be in the front line of closures at larger retailers because the stores have already seen pruning their numbers.
Debenhams boss Rob Templeman made the point before Christmas that unemployment numbers in the retail sector looked more buoyant than they should because hours were being cut across the board, thereby delaying job cuts.
If hours have been cut to the bone then the only next step is actual job losses. When you add these to the growing numbers that are losing their livelihoods at the smaller businesses that are closing their doors then it really is grim - up north, down south, and all points east and west.
glynnd@theretailbulletin.com
Tagged as: glynn davis
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