Good business planning is vital

The next few months could be crucial for retailers to ensure their business strategies are ready to cope with potential changes in the economic climate.

So far, the signs are positive with trade show organisers reporting healthy bookings from exhibitors and plenty of visitors placing orders. September is a month traditionally packed with trade shows for the gift buyer but it is crucial to be well prepared.
The rise in VAT had long been predicted according to Jacqui Joyce, head of retail and Partner at leading law firm, Thomas Eggar LLP who said: “The deferment until January should have come as a welcome reprieve.  The Chancellor has rung a warning bell and given retailers time to develop a strategy to combat a potential second economic dip.

“So it would seem that this time retailers were given a life line: six months to draw up a battle plan to secure that all important, but ever diminishing share, of the consumer purse.   “In reality we all know that Christmas is just around the corner. So, how can you make the most of this small window you have been given? “Simple – by auditing your business, re-negotiating with your suppliers and landlords and implementing cost saving restructuring strategies so that you are leaner and fitter to comb at the rocky road ahead.

“Vital planning will ensure survival but also position you to emerge into a better economy, stronger than your competitors around you.”

And there was positive encouragement from Isabel Martinson, chief executive of the Giftware Association. She said: “I am not pretending things are easy out there but there are plenty of people telling me they are doing good business.” The last budget had not led to widespread doom and gloom among retailers according to Isabel who said: “ I think people were already resigned to the fact that VAT would go up and are considering their options.”

Last month (July) the Confederation of British Industry also reported sales on the High Street surpassed expectations compared with last year and there were high hopes the trend would continue during August.

Annual summer discounts, the World Cup and warm weather appeared to have encouraged sales, according to the leading business group. A spokesman said: “We still expect the recovery in overall consumer spending to be fairly restrained, however, given concerns about the impact of public spending cuts and weak prospects for real take-home pay in the coming year.”