ID :
210867
Mon, 10/03/2011 - 12:56
Auther :
Shortlink :
https://oananews.org//node/210867
The shortlink copeid
Retailers bracing for a tight Christmas
SYDNEY (AAP) - Oct. 03 - Retailers are bracing for a lean Christmas with heavy job losses and meagre sales expected amid growing economic uncertainty.
A survey by credit agency Dun & Bradstreet found more than half of wholesale and retail businesses surveyed expected demand to slow over the next 12 months.
The trend of dwindling profit margins in the retails sector is likely to result in job cuts during what should be the sector's peak period, according to a D&B statement on Monday.
Employmentand profit expectations have recovered from last quarter's negative index, the first in two years, but are still significantly below projections for this time last year.
D&B CEO Christine Christian said Australians were saving at levels not seen since the 1980s and retailers seemed to be giving up hope that conditions would improve before Christmas.
"There is an acute awareness in the industry that retailers cannot count on the usual flurry of Christmas spending to push them over the line," Ms Christian said.
"This is a real concern for many businesses as Christmas is such a key time for discretionary spending."
D&B said the profit expectation index rose seven points to five, and the employment expectations index gained four points to one from the previous quarter.
The Business Expectations survey correlated with official statistics that showed business credit had fallen in the past year.
Less than 20 per cent of businesses plan to seek finance or credit to expand their operations in the coming months, the survey found.
Ms Christian said this was a sure sign businesses were worried about the future.
D&B economic consultant Duncan Ironmonger said in the past three years Australian households had increased their level of savings to a relatively high rate of about 17 to 18 per cent of their disposable income.
In the years 2003 to 2005 household savings ratios were about eight per cent.
"The recent higher saving level has been accompanied by a very flat trajectory of retail spending," Dr Ironmonger said.
A survey by credit agency Dun & Bradstreet found more than half of wholesale and retail businesses surveyed expected demand to slow over the next 12 months.
The trend of dwindling profit margins in the retails sector is likely to result in job cuts during what should be the sector's peak period, according to a D&B statement on Monday.
Employmentand profit expectations have recovered from last quarter's negative index, the first in two years, but are still significantly below projections for this time last year.
D&B CEO Christine Christian said Australians were saving at levels not seen since the 1980s and retailers seemed to be giving up hope that conditions would improve before Christmas.
"There is an acute awareness in the industry that retailers cannot count on the usual flurry of Christmas spending to push them over the line," Ms Christian said.
"This is a real concern for many businesses as Christmas is such a key time for discretionary spending."
D&B said the profit expectation index rose seven points to five, and the employment expectations index gained four points to one from the previous quarter.
The Business Expectations survey correlated with official statistics that showed business credit had fallen in the past year.
Less than 20 per cent of businesses plan to seek finance or credit to expand their operations in the coming months, the survey found.
Ms Christian said this was a sure sign businesses were worried about the future.
D&B economic consultant Duncan Ironmonger said in the past three years Australian households had increased their level of savings to a relatively high rate of about 17 to 18 per cent of their disposable income.
In the years 2003 to 2005 household savings ratios were about eight per cent.
"The recent higher saving level has been accompanied by a very flat trajectory of retail spending," Dr Ironmonger said.
