Retail Sales Rise, Credit Managers Can Ensure It Stays That Way
6th March 2018.
Figures revealing rising retail sales have offered some respite to a sector still reeling from high numbers of administrations in the past few months.
After a hard Christmas for retailers last year and an even harder new year, it seems that there is finally some good news on the horizon for the sector. According to new figures from KMPG and the British Retail Consortium, retail sales in the UK were up by 0.6 percent in February, while total sales rose by 1.6 percent, showing significant growth compared to the same month last year. The grocery sector continued to perform well, with the recent cold weather encouraging consumers to keep their kitchen cupboards well stocked.
Here at the Credit Protection Association, we have aided many of our retail members who have been hit hard by slow consumer spending and super-squeezed household budgets. This boost in sales is a sign that consumer behaviour could be changing, but we must insist our members do not resort to complacency. Consumer spending is predicted to slow this year so retailers should always work on their cash flow, and ensure they at least have a safety net to ctahc their business if they fall.
Paul Martin, head of retail at KPMG, which compiled the figures with the British Retail Consortium, said: “Retailers experiencing any growth in this environment will be counting themselves lucky. Indeed, total growth of 1.6 percent in February is quite an achievement in such testing times.”
Last week, more than 5,500 jobs were placed at risk after both Toys R Us and Maplin entered administration. Their collapses, on the same day, have raised fears that the industry is in for a tough year as it grapples with volatile consumer spending and rising costs.
Consumer spending rose by 3.8 percent in February on the year as shoppers budgeted for “nice-to-have” purchases, according to Barclaycard. Spending on groceries was up 3.2 percent last month, while expenditure on non-essential items rose by 3.8 percent. Entertainment remained a bright spot, with spending up 8.6 percent, bolstered by cinema and theatre excursions, while travel spending rose by 7.4 percent.
This has been a hard year for retailers, with companies falling like dominoes and interest rates and business rates soaring. While the recent sales boost will offer some relief to retailers, there is still some way to go before the sector could presume it has overcome the worst. Retailers need to always pay close attention to their cash flow and their credit, and ensure that neither are causing their business any disfavour.
At the Credit Protection Association, we help many of our members improve their cash flow and propel their credit. Our debt recovery service chases bad payers and late payers, recovering debt that our members had thought long-lost. This extra bit of cash helps our members fund new investment or simply bring them back from the brink of insolvency. We also boast a wide range of credit management products, from credit reports to monitoring programmes, both of which provide our members with a scrutinising eye over their customers’ financials and prevent any ‘surprises’ later on down the line. We encourage all business owners to credit check their customers and suppliers, stopping them from imitating the fate of many in the sector.
If you think you are in danger of joining your fellow retailers into liquidation, don’t despair. If you are struggling with your cash flow and concerned for your business’ prospects, come to CPA first before you consider liquidation. We will recover bad debt, chase late payers, and you will back in the driving seat in no time!
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
Keep up to date with the latest news by following us on social media:-
Watch the video to find out how CPA can help you!
How to overcome 25 of the most common excuses for non-payment
Click the image to discover step by step advice on how to deal with them!
Discover how to improve your cashflow in 3 steps.
Click the image to find our answer to the question “How can you get paid on time?”
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.