Very often
the best indicators are the least sophisticated. The UK economy remains in a
very fragile state – the clearest evidence of this can be seen as you walk down
any High Street.
The number of retailers entering administration in England and Wales in
the first quarter of this year was up 15% on a year earlier.
69 firms failed during the three-month period, compared with 60 a year
earlier.
The number of job losses that came as a result of these administrations
was almost 10,000 out of the 22,000 employed by those companies
The rising
number and popularity of charity shops tell underscore that many families are
struggling. Consumers struggle with debt and job insecurity.
As the
knock on effect percolate back down the chain many businesses will suffer.
External factors by definition are difficult to handle but at the same time
in-house disciplines can at least provide some insulation.
Cash-flow
will remain difficult to manage so as always strict governance of Debtor and
inventory control will provide some measure of comfort
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