UK Retailers Facing Recession

Saturday 18th of October 2008 03:16:20 PM

UK Retailers Facing Recession

Sometimes the clothing and textile industry news is good, but with a global recession in the making, there is really not much good to report at the time. UK retailers, including those selling wholesale t-shirts and those selling the most elite fashion, are witnessing a downturn in sales. The prediction is the UK is facing a long and deep recession.

Mr. Quentin Fitzsimmons oversees government bonds for Threadneedle. He was quoted as saying, "The recession, and we are of the view that we are already in a recession, is expected to be protracted." He went on to say that consumers are going to be spending significantly less in the future on all products, services and durable goods. Housing sales are falling along with housing prices; unemployment is up; and the financial markets are still unstable.

The prediction is there will be continued volatility in the economic environment as people struggle to deal with the financial crisis. Mr. Leigh Harrison heads the UK equities at Threadneedle, and he believes the economy is just now beginning to fall off which means the profitability of corporate UK is going to decline.

Of course there will always be companies which sell products people must have even during difficult economic conditions. They include food, cleaning items, hygiene products and basic clothing like cheap polo shirts. This means there are still many financial opportunities for people seeking ways to invest in a market that is down. The only caution is that financial markets are expected to experience wild swings over the next year as the economy straightens itself out.

The clothing retailers which survive the recession will be those which are financially lean and innovative. They may not look as stable as they really are during these times of financial volatility, but many are sound and prepared for long success.

(c ) Image by Simona Balint, www.sxc.hu/