22-04-2008
Job creation slowdown predicted for retail sector
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Retailers occupying the middle area of the market are expected to be the most vulnerable traders during the economic downturn in the UK, according to one expert.
Richard Dodd, head of media and campaigns at the British Retail Consortium, believes that larger retailers will be able to cope with a slowdown but medium-sized businesses may find themselves in difficulty.
Companies that do not have major economies of scale, are not a well-established brand or who are unable to compete on price with bigger players may be the ones who feel the pinch the most, he said.
"We are not expecting mass retail job losses, although there is going to be a slowdown in job creation in retail," stated Mr Dodd, though he added that he does not predict "any sort of catastrophe".
His comments follow those of Arcadia chief Sir Philip Green, who complained at the World Retail Congress that too many companies in the retail sector are headed by people who have a financial interest in the business.