Better news from the high street as retailer is saved
Despite uninspiring December sales on the British high street, numerous reports of companies going bust or being on the verge of administration, and a continued gloomy economic outlook, it appears that there may be a glimmer of hope that things may not be a bad as everybody feared.
According to the Confederation of British Industry’s (CBI) latest Distributive Trades Survey, although January sales remained “sluggish” they still beat expectations with certain sectors, including footwear and leather, actually reporting increased sales year-on-year, having fallen in December. Furthermore, retailers also believe that conditions will improve next month.
John Longworth, chairman of the CBI's Distributive Trades Panel, said: "The January sales were a little flat this year, and were weaker than the lacklustre lead-up to Christmas. While sales of groceries and household essentials went quite well, shoppers are watching their wallets, and that can be seen in the big drop in sales of big-ticket items like TVs and washing machines. However, this survey and recent CBI manufacturing data show that, while market turbulence is undoubtedly affecting consumer confidence, the economy as a whole is nonetheless bearing up and is continuing to grow, if more slowly.”
Meanwhile, despite continued difficulties for many British footwear retailers 2,700 jobs have been saved at the Stead & Simpson chain, after it was acquired by Shoe Zone. Following on from Dolcis, which went into administration earlier in the month (see www.leatherbiz.com January 23), Stead & Simpson called in the administrators on January 28, but was acquired by the Shoe Zone on the same day. Under the deal, 309 of its stores will remain open and 2,700 jobs will be saved although some 37 outlets will close with the loss of approximately 160 staff.
Commenting on the acquisition Anthony Smith, chief executive of Shoe Zone, said: "We are delighted to acquire the Stead & Simpson business and continue to play our part in the consolidation of the footwear market. We look forward to returning the Stead & Simpson business back to profitability in the coming months."
