Up and down

LEADING businessmen are not always known for their rhetorical flourishes but when Lord Wolfson, the chief executive of Next, said retailing felt “like walking up the down escalator” he spoke simply and for many people in Britain.

By The Newsroom

Published 25th Mar 2011, 06:00 BST

Three years of difficulty on the high street show little sign of abating, with retail sales falling again last month. While trading remains slightly up on last year, shopkeepers are right to feel nervous about the future. The impact of public sector cuts, both on the pound in your pocket and on economic confidence more generally, will continue to hit spending. At the same time, the cost of living has steadily risen, with the Bank of England showing little inclination to raise interest rates. Shoppers’ caution is understandable, however. Too many Britons borrowed heavily over the last decade and eventually the credit bubble burst.

Yesterday Next, B&Q and Ted Baker all made gloomy predictions about the rest of 2011 but, in focusing on growth areas like the internet and emerging markets, they underlined the fact that there are still opportunities for flexible businesses that can adjust to consumer demand. In short, no-one should give up hope just yet.

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