Another leading retailer has announced plans to close stores, as the UK high street continues to struggle.
Ahead of the announcement of its annual results on Wednesday, Marks & Spencer is due to announce plans that it will be closing 100 of its “full line” stores – those that sell clothing and food – amidst falling sales and profits.
According to analysts, the retailer is expected to report a second year of decline in profits, with clothing and home like-for-like sales expected to drop 1.1 per cent, and food sales likely to drop 0.2 per cent. The announcement could see M&S fall off the prestigious FTSE 100 list, where it has been member since its inception in 1984.
Market conditions for high street retailers across the board are tough right now, with Mothercare, House of Fraser and New Look, amongst others, all announcing plans to close stores and restructure their businesses.
The rise in online retailers, such as Amazon, has also impacted the sector. Philip Green’s Arcadia Group, which owns fashion brands including Topshop, Topman and Dorothy Perkins, has been hit hard, with sales dropping 5.6 per cent to £1.9 billion.
But it’s not only the retail sector in turmoil. Gordon Ramsay’s restaurant empire is the latest victim of the turbulent market, which has seen a number of high profile businesses in the hospitality & leisure sector, including chains Byron, Strada, Jamie’s Italian and Prezzo, announcing closures in recent months.
In order to survive and thrive in these challenging times, business owners need accurate, reliable and timely financial information, whether that be profit or cash focused, or both, to accurately and effectively manage the company’s finances and drive growth.
At Beavis Morgan, our retail and hospitality & leisure business experts can help you identify your requirements and then design and implement a system that will provide all the information you need, within a cost effective and efficient framework.
Being able to understand and evaluate your business through real-time information on actual performance is critical and could mean the difference between survival and business failure.
To find out more about how we can assist you and your retail business, contact Steve Govey or your usual Beavis Morgan Partner.