Latest research shows that, whilst online retail has fared better than the high street, even this area of the sector has not gone unscathed.
In 2018, a total of 246 online-only retail businesses became insolvent, up 19 per cent on 2017 and more than double the 120 that failed in 2010.
Consumer caution, coupled with competitive price pressures as more and more retailers turn to aggressive discounting strategies to attract customers, underscore the increased challenges faced by the online-only retail sector. Adding to this, return of stock is as high as 40 to 50 per cent across the board for online-only businesses, again impacting numbers.
In order to survive and thrive, retailers need to carefully separate out which factors have affected them and adopt strategies for weathering the storm, such as responding quickly to changing consumer preferences.
Business owners also 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 SME 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.
Through our partner businesses, BM Structured Finance and BM Advisory, we are able to help with sourcing and restructuring debt finance for businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
To find out more about how we can assist you and your retail business, contact Steve Govey.
