Thursday, February 2, 2012

High street braces for wave of failures as La Senza closes 80 shops

analysts predict up to 40,000 jobs could be lost in the chain of underwear joins the list of those who are struggling to contain their debt

thousands of workers at the store will lose their jobs this year as some of the names of the most popular streets are faced with financial ruin, despite an increase in activity during the holidays.

poor sales before Christmas was the last nail in the coffin for combat chains such as La Senza Lingerie, sometimes donated mil-owner of Black Entertainment and nostalgic last detail.

KPMG, working on an emergency rescue of La Senza, announced this weekend that more than 80 of its stores would close, which is likely to result in hundreds of layoffs. La Senza site showed a list of offices for the waves, including large cities such as Bristol, Cambridge and Edinburgh.

A wave of store closings and jobs for blacks in the past and should continue in the coming weeks. Among them, the three channels employ over 7,000 people. Jonathan De Mello, head of retail consulting firm CBRE, said between 30,000 and 40,000 jobs could be lost in detail in the next 18 months as a "minor recession" chews on the street.

"may not be an official recession, but we are in a retail recession," he said. "Retailers face falling sales and profits."

Last month, De Mello provides 20,000 jobs in retail in 2012, based on a 1% increase in vacancy rates in the store. But after weak holiday sales set now seemed conservative, said, warning that "could be double."

The taste of the carnage to come was seen last week when more than 1,800 store staff were fired in Bradford-based chain group D2 Barratts shoe fashion is invaluable and the Scots. Another 400 jobs are at stake in the chain Bazaar Hawkin toy that went into administration on Friday.

Constable said: "The high street retailers face increased income and wage inflation, with a drop in sales ... for many retailers, the numbers simply do not add. "He added that the additional burden of VAT invoices in the first quarter of 2012 could be the" high "that some companies at the end of failure.

Analyst Maureen Hinton
the verdict research firm, said: "Many retailers have been in trouble with the high level of debt and trade does not make enough money to debt when n It was cheap and. retail environment has been sustained, the weakest operators were protected, but with little or no growth in many sectors of commerce, progress is realized at the expense of a rival. "

Verdict predicts that retail sales rose only 1% this year. Over the past 40 years, spending only were lower in 2009 and 2011. The British began to tighten their belts in 2007 and late 2012, spending on clothing and household items have been reduced by nearly £ 10 billion - almost the equivalent of non-food annual sales of John Lewis , Next and Marks & Spencer together.
The traditional High Street store has been undermined by the growth of the Internet and huge supermarkets that sell everything from food to the village of furniture, clothing, shoes and CDs.


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