And on it goes. Last month there was the built-up hope that the recession would finally be at an end. It wasn’t to be. The forecast growth in the economy turned into a 0.4% shrinkage. But – apart from headlines shrieking that the UK will be “in recession at Christmas” – so far as the the retail market is concerned, the situation is not expected to be much worse than it was a year ago.
Those retailers who have already survived the worst of the economic turmoil are likely to still be trading in the next few years. And the fallout from the Baugur collapse has left those retailers who weren’t brought down by the Icelandic bank crash in a stronger position (p20).
Marketing is one area sorely feeling the affects of the recession. Gone are the days of unlimited budgets (p15), but this isn’t necessarily a bad thing. Developers and landlords – with the help of marketing firms – are liaising more with retailers and shoppers and are putting a lot more creative thought into decisions on new campaigns.
Oiling the wheels?
One financial change that may hurt retailers is the rise of VAT from 15% back to to 17.5% on 1 January (p28). But no one is really sure exactly how they will be affected. Predictions vary from those who consider it will reign in consumer expenditure, to those who think the change will be virtually unnoticed.
One thing the market can be assured of as it moves into 2010 is that the 12 months ahead should prove that there is light at the end of the tunnel. And most of the market will be glad to leave 2009 firmly behind.
