Suppliers and staff to feel the pinch most
Positive trading statements were reported by only 22 per cent of quoted retailers during the third quarter, compared with 41 per cent the previous year.
Accountant Grant Thornton, which carried out the research, said staff and suppliers would feel the pinch as retailers apply pressure to take back unsold stock and redundancies are made to cut costs.
Some 58 per cent of retailers posted neutral statements, while a fifth of quoted retail companies gave negative trading results.
Grant Thornton head of retail David Bush said: 'As retailers attempt to shore up gross margins and shift stock before the busy Christmas period, it is probable that suppliers and employees will be the victims. We are already seeing larger retailers trying to pass some of their problems towards their suppliers by pushing unsold stock back.'
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