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RichM

'this Year Could Be Worse Than 2005'

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http://www.telegraph.co.uk/money/main.jhtm.../08/ixcity.html]'This year could be worse than 2005'[/url]

"2006 could be worse for retailers than 2005," says Richard Ratner, analyst at Seymour Pierce. Charles Stanley's Proctor agrees that things will remain tough.

Goldman Sachs believes that deflation will push the price that consumers pay for clothes down by about 2 per cent in 2006. The price of electricals will fall by 11 per cent. At the same time the costs of running a retail business will rise by four percentage points. This is more than sales are expected to rise and means that retailers will get lower returns from higher outgoings - a grim squeeze.

"Retailers are going to run quite a bit faster in 2006 than they did in 2005, even if demand picks up," says Hyman.

These are sobering thoughts for any retailer who claims to have had a bumper Christmas. As one retail chief says: "It is not the end of the world for UK Retail PLC, but it is going to be tough."

http://www.telegraph.co.uk/money/main.jhtm.../08/ixcity.html]'This year could be worse than 2005'[/url]

Compare with this at the Times:

Signs of hope for a retail recovery, Times, 8-01-2006

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So it begins. Decrease sales = decrease need for staff = existing staff woried about their jobs so they spend less = decrease sales = ............................

Terribly predictable. Batten down the hatches.

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So it begins. Decrease sales = decrease need for staff = existing staff woried about their jobs so they spend less = decrease sales = ............................

Terribly predictable. Batten down the hatches.

How about this for an early morning bull post.

BOE cuts IR Feb and the Chancellor announces cuts in personal tax rates "To stimulate the economy during this out of trend period and to therefore bring us back on course to continue the positive growth we have had up to now".

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How about this for an early morning bull post.

BOE cuts IR Feb and the Chancellor announces cuts in personal tax rates "To stimulate the economy during this out of trend period and to therefore bring us back on course to continue the positive growth we have had up to now".

Wouldn't make any difference - the trend is only there because of low IRs and massive debt - we are at a stage where interest charged compared to the amount of debt is minimal

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Sales at work were woefully down in the run up to Xmas (by upto 25% yoy), however, things have picked up again and we're now about 5% up yoy and are top of the cluster.

I do think people shopping habits are changing now. Can't afford a new plasma tv? Lets treat ourselves to a couple of bottles of wine instead....

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Sales at work were woefully down in the run up to Xmas (by upto 25% yoy), however, things have picked up again and we're now about 5% up yoy and are top of the cluster.

I do think people shopping habits are changing now. Can't afford a new plasma tv? Lets treat ourselves to a couple of bottles of wine instead....

Well, the businesses one wants to run in a recession are those serving people's vices. Tobacco, alcahol, drugs, gambling and sex are pretty much recession proof, so Libitina's anecdotal evidence doesn't surprise me.

Edited by shermanator

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Well, the businesses one wants to run in a recession are those serving people's vices. Tobacco, alcahol, drugs, gambling and sex are pretty much recession proof, so Libitina's anecdotal evidence doesn't surprise me.

I would just like to point out that Asda only cater for the first 4 of those.

Edit: Although we do sell condoms and pregnancy tests, so I suppose we do cover all of the above really.... :D

Second edit: KY jelly too :blink:

Edited by libitina

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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