For reasons well documented over the past days the UK economy is in a very fragile situation. Despite all the signals many businesses still seem unwilling or unable to face facts.
A classic example is the retail sector – the run up to Christmas, October through to December the so called “golden quarter” has always been of prime importance.
As 2011 unfolded it was evident that consumers would be faced with tough decisions and the traditional Christmas buying spree would not materialise. Now that this is proving to be so we are seeing a number of leading retailers who are in denial.
Various reasons are being cited to explain the lack of sales such as the unusually warm autumn weather, but the more pertinent fact is simply many UK consumers do not have buying capacity.
It was obvious that faced with rising fuel and utility bills, a squeeze on income and a higher than anticipated inflation rate that something would have to give.
Retailers in particular should forget their theories and notions as to what people ought to be doing and consider what they are doing.
Once a business is oriented to face facts rather than delusions, problems tend to fall into their true perspective and become soluble.
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