UK Retailers are going to face a tough 2019.
James Salmon, Operations Director, 02/01/19.
UK Retailers are going to face a tough 2019 according to the latest research.
As many as ten thousand shops could close this year as heavy discounting wipes out profits and business rates remain high.
The prediction comes from the Centre for Retail Research, whose Professor Joshua Bamfield says: “The greatest sufferers will be the smaller, independent retailers who have to pay high rates and wages while not getting as much business. There will be a continuation of the current situation rather than an absolute calamity.”
The number of job losses in the retail sector are expected to rise 19.2% to 164,000 in 2019.
Meanwhile, insolvency specialists Begbies Traynor say 30,214 UK retailers are in “significant” financial distress. Partner Julie Palmer said: “The picture is very uncertain for 2019. Even online is not immune.”
How can CPA help?
Do you sell to retailers? Do the people you sell to, sell to retailers? As the dominoes drop, many other businesses are going to be hit hard by this wave of insolvency. This is another reminder than it is important to monitor your customers and to set appropriate credit policies depending on their financial health.
Just because you have been dealing with a customer for many years without any issues, it doesn’t mean you are trading risk free.
Healthy companies can see their fortunes change , leaving suppliers who have extended credit caught out.
Just look at how many big names have disappeared from the high street already in recent years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
As a third party collector, we can get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
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For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
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!
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