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As the UK’s largest retailer warns of ‘straining profitability’, how can the high street brace itself for 2012?

The New Year has always been the time when people make promises to eat more healthily; go to the gym more, cut down on the wine consumption and other such resolutions. This is no different for the big high street brands.

Annually, the retail sector delivers its achieved figures with a sense of trepidation, with some breathing a sigh of relief but many taking a large gulp of collective retailing medicine after poorer results than expected. This is the nature of our capitalist system – some businesses prosper whilst others are left pondering how to set their curve in an upward direction for the year to come.

This year has been no different, with the likes of Argos, HMV and even high street titans Tesco recording a 1.5 % decrease in sales over the Christmas and New Year period. That said, equally illuminating is the list of companies who have avoided the economic and meteorological damp squib that was Christmas 2011.

Sources predict in 2012 little or no sales growth and with competition from the Internet and supermarkets intensifying, the bell is ringing for "round two of retail Darwinism," commented Matthew Maxwell, retail analyst at Kantar Worldpanel.

The Bank of England’s forecasts predict a sharp fall in inflation in the first quarter of 2012, with the official rate expected to fall by around 1.5 and 2 percentage points. The number of retailers going into administration has fallen significantly since 2008, but 2011 has been a particularly tough year although not nearly as tough as 2009.

Research house Verdict predicted that retail sales would barely grow this year highlighting predicted growth of £3.5bn - roughly 1% - to a total of £295.3bn. That said, there were positive sounds in the market place - House of Fraser with an 11.1% increase in like - for - like sales for this time last year, Debenhams at  6.5%, John Lewis at 6.2% and Sainsbury’s at 1.2% respectively.

I would argue that despite a significant number of retailers sinking into administration over the last 12 months  - even the likes of Tesco are feeling the pinch - that there is, in fact, light on the horizon for embattled high street brands -a light which is being projected most brightly by the likes of John Lewis, Sainsbury’s and Debenhams.

To understand why these retailers have managed to buck what seems to be an endemic trend, we need to look at how they have managed to do this.

It has long been recognised that the formula for a successful company has changed from that which worked 20 years ago. The ‘Bricks versus Clicks’ argument is an issue that every high street retailer has had to address since the year 2000 brought about by the exponential growth in popularity of the Internet.

Next experienced a 2.7% dip in store revenues in the five months to 24 December but online revenues for the period grew 16.9%. In a statement to investors, the company said that "the strong performance of Next Directory continued to compensate for sliding sales at stores.”
While the company did not disclose revenue figures, it said that total sales rose 3.1% to the benefit of its online trading and it expects its full year profits to be approximately £565 million.

Similarly, online sales at John Lewis rose by more than a quarter over the Christmas period. The department store highlighted how e-commerce sales rose by more than 27.9% in the five weeks to 31 December. In a trading update, the company also said its online sales had now topped £600m for its financial year to date, which runs until the end of January. Total sales in the five weeks to 31 December were £596m - 9.3% up on the same time last year. Figures peaked in the week to 17 December when John Lewis took £133.1m in total. The following week, to 24 December, £124.7m was spent - 32.7% up on the same time last year. But sales in the final week to 31 December were down by 4.8% on last year, at £101.3m.

Meanwhile, John Lewis sister company Waitrose supermarket reported: “Its strongest online Christmas yet.” Sales at Waitrose.com were up overall by 49%, with orders in the seven days before Christmas up by 68%.

The strong online sales contributed to a 9.5% lift in grocery sales at Waitrose in the month of December. On a like-for-like basis total grocery sales were up by 3.8%, a figure that has been replicated by Sainsbury’s too.

Having an edgy website does not necessarily mean you will stave off economic hardship nor does having a pithy advertising campaign. The likes of John Lewis, Waitrose, Sainsbury’s and other successful retailers all have one aspect in common: they instil consumer confidence. In times of recession, consumers want to feel a sense of security in the brands they are buying from, knowing that that retailer will still be on the high street a month later if they need to return a product or seek advice.

This consumer confidence establishes itself over time - a commodity struggling retailers often don’t have. However, a combination of high street and strong online presence, monitoring of consumer spending trends along with an efficiently structured corporate business model are certainly three ways retailers can ensure a company is robustly positioned for 2012.

 

Comment from Phil Duffy, Partner at Duff & Phelps
philip.duffy@duffandphelps.com
www.duffandphelps.co.uk

 

Introducing The Award – Winning Duff & Phelps

See Each Month For Our Latest Article Update

Introducing the Award-Winning Duff & Phelps

 

The UK Restructuring practice of Duff & Phelps is focused on corporate restructuring and turnaround advisory.  Our aim is to offer turnaround, restructuring and insolvency services of outstanding quality to banks, lenders, business owners and individuals in the mid-market sector.  We seek to provide the most practicable ways to resolve issues affecting business performance.
 
In the UK, Duff Phelps is renowned for saving businesses, reputations and livelihoods, even in the most difficult of situations.  Our ‘act early’ approach is indicative of what it terms its Rescue Culture. The firm’s 19 Partners and Directors practice an ethos of high-level involvement to ensure that each assignment capitalises upon the expertise and knowledge of the whole team. They embrace the measures introduced by The Enterprise Act 2003 to help ensure rescue and recovery is swift and effective, which includes strategic changes to management, helping to improve profit margins and making cost reductions with a view to maximizing the return from a business.
 
Duff & Phelps offers a range of restructuring services which include:

  • Business Consulting - Advice to lenders and corporate borrowers on business viability, profit improvement and turnaround solutions
  • Corporate Restructuring - Insolvency and restructuring advice to corporate businesses, banks and other financial lenders
  • Tax Arrears Solutions -  Cash management and consulting services to assist in rescheduling HMRC debt in circumstances where liquidity issues exist and viability maybe in question
  • Receivables Management -  Debt collection and sales ledger management services, including ledger review and reconciliation work
  • Finance Brokers - Operates as a deal generation team for the banking, asset based lending and financial sectors to deliver reciprocity.  
  • Personal Financial Solutions - Provides debt management and insolvency advice to unincorporated businesses.

As a leading global provider of financial advisory and investment banking services, Duff & Phelps balances analytical skills, deep market insight and independence to help clients make sound decisions. The firm provides expertise in the areas of valuation, transactions, financial restructuring, alternative assets, disputes and taxation, with more than 1,000 employees serving clients from offices in North America, Europe and Asia. Investment banking services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps Securities Ltd. is authorised and regulated by the Financial Services Authority. Investment banking services in France are provided by Duff & Phelps SAS. For more information, visit www.duffandphelps.com.
(NYSE: DUF)
For more information visit http://www.duffandphelps.com/uk-restructuring or contact your nearest office:
London – 0207 487 7240 / London@duffandphelps.com
Birmingham – 0121 214 1120 / Birmingham@duffandphelps.com
Manchester – 0161 827 9000 / Manchester@duffandphelps.com

HBD Europe

Born in 1988, Simply Beautiful Collections (SBC) is the foremost professional skincare and make-up brand in Britain today. Over 25 years of expert knowledge, dedication and experience have been drawn on to create SBC's renowned ranges of powerfully active natural skincare and uniquely formulated professional make-up.

The Barn Clinic

Welcome to the website of The Barn Clinic a specialist clinic run by Robin Weaver - a muscular skeletal podiatrist and expert in lower limb biomechanical disorders - and his team providing treatments and information in the areas of podiatrychiropractic advice, chiropody, back pain, lower limb conditions, sports injuries, orthotic devices, Tens machines in Sheffield and South Yorkshire.

Sunshine Denture Limited

We provide and manufacture quality precision dentures. With over 28 years experience we are able to provide dentures using the most advanced techniques available. Combining the latest technology and the creative flair of our Denturist we will provide you with natural looking and comfortable new dentures.

Laser Quest

Laser Quest is a game of wits, cunning, strategy and stealth. A game that almost seems like the real thing. Laser Quest is an indoor game where you can enter a fantasy world where you compete in a game of electronic tag as a team or individual in our pre-built arena.

Patey Hats

With a heritage going back over 200 years, Patey are proud to say that their craftsmen still create hats using the same skills as hat makers in the eighteenth century.

Alabaster & Wilson

For well over 100 years, Alabaster & Wilson Ltd. has epitomised top quality and craftsmanship in the manufacture of fine jewellery in England. From a beautifully enamelled diamond racehorse brooch, to a fine black opal and diamond ring, pendants or cuff links in gold or platinum set with diamonds and precious coloured stones, our craftsmen work to the highest standards using traditional skills.

Maureen Bowman Master Hypnotist

Maureen Bowman is a Hypnotherapist and Master Hypnotist based in Tyne and Wear, North East of England, with over 4 years professional experience in the field of Hypnotherapy and Quantum Pain Therapy. Maureen is a professional Hypnotherapist trained and recognised by The British Academy of Hypnosis and a member of the Hypnosis Circle.

Hibrow Fashions

 Hi-Brow Fashions in Sleaford. Hi-Brow Fashions can sell womens clothes, mens clothes, shoes, suits and dresses in Sleaford or help find clothes and shoes Sleaford. 

Victoria Pine Furniture

Our popular tailor made products include: dining tables, storage cupboards, bookcases, wardrobes, bathroom cabinets, beds and tv units in contemporary, traditional and painted styles, fireplace surrounds with a waxed or painted finish. Contemporary and traditional solid oak, pine, painted furniture for dining rooms and bedrooms at excellent prices. All of these are tailor made furniture to your exact requirements.

Bantam Knits

At Bantam Knits you will find 100% Cashmere or Lambswool, knitted, felted and hand dyed scarves, cushions and throws. Each one is an original one-off piece.

The cushions and throws are suited to both modern and traditional interiors.

Bridgewood Financial

Bridgewood was created by people who want to provide long term debt help and support to individuals, families and small businesses. We are passionate about delivering a great service – which means giving good advice, offering the best financial solutions, providing value for money and helping you make the most of your financial situation.

Mary Gillett

Mary Gillett trained at Bristol Polytechnic, then specialised in etching on a postgraduate course at Brighton Polytechnic. Her paintings and etchings explore surface and texture to create images of intense mood and atmosphere. 

Stagecoach Beckenham

Welcome to Stagecoach Beckenham where we provide quality part-time training in the performing arts for children aged 4-18yrs. Our aim is to nurture and develop young potential through singing, acting and dance classes in Beckenham, stretching young imaginations and building confidence.

Parchment Express

Parchment Express Arts & Crafts is a family run business based in South Leicestershire in England Specialising in Parchment Craftand have been trading for over 16 years. It is owned and managed 
by Jez Loweth & Sandra Foster.

Knits in the City

Knits in the City is a new on line supplier of quality yarns, patterns and accessories.The business was started on the back of the new knitting revolution that is taking the world by storm.My name is Christine Feery the founder of the company.  I have knitted for 30+ years and enjoy the creative side of the craft.  I have always been very fashion conscious and design many of my own garments.  With this in mind I have concentrated on the most up to date yarns, patterns and accessories.

 

 

The Quadrant Club

The award winning Quadrant Club is situated in number 7, of the historic Quadrant buildings, in the heart of the city and close to the train station.  It is a traditional family run venue, recently re opened by one of Coventry’s leading Landlords: Robin Addey.

Reads of Winchester

Reads of Winchester is a leading supplier of new and used sewing machines and a range of needles and threads. We stock sewing machines from leading manufacturers including Elna, Bernina, Janone and Toyta.

 

Heritage Photo Albums

Why choose Heritage Photo Albums for storing your treasured photographs?The reasons are simple.  The Heritage range of wedding photo albums and traditional photo albums are renowned for the finish and high quality and the range is the largest available in the U.K.

Star Bright Express Ltd

We are proudly the first company in the world to stabilise teeth-whitening gel  in our patented whitening foam delivery system. By stabilising teeth whitening  gel to a neutral ph we can use our unique delivery system that makes it possible  to provide fast affordable professional quality teeth whitening.

Suzi Q's Dress Agency

Looking for that special outfit?  Prom Dress, Wedding Outfit, Ladies Evening, Cruise or Casual Wear.

We have a large selection at reasonable prices from £4 - £150, in sizes 6 - 24.
Plus accesories: Shoes, Bags & Hats
and a small selection of Menswear.

Emerald Mobility

We are an independent company supplying wheelchairs and seating from a comprehensive range.Not only are these made to measure, adjustable and customised for your needs, we will also manage the whole process right through from the assessmentto the handover of your chair. This ensures you receive good advice and great service. 

 

Sutcliffe Electronics

Sutcliffe Electronics are manufacturers of electronic equipment used mainly by the rural community. We manufacture Driveway Alarms, and Bird Scarers, and are willing to tackle bespoke projects

 

Robert Welch

The Robert Welch company has been established for over 50 years as a family run concern. The company ethos is to design products that have personality, having functionality and affordability as important characteristics of any new product. New designs are constantly being introduced and can be found on this website and in the Robert Welch shops.

 

Wonderful Wellies

We are a small family run business based in North Northumberland. We have carefully selected a range of wellies that we hope you will enjoy. Not only are the wellies fun, they are also totally practical for both Winter and Summer.

We hope you find a perfect pair of wellies either for yourself or as a present and that you enjoy them as much as we have enjoyed selecting them.

The Modern Toastmaster

A professional Toastmaster, or Master of Ceremonies, adds a touch of class to any occasion or function. Using a professional toastmaster ensures that the proceedings will run smoothly, be conducted with dignity and authority and leaves the organisers free from anxiety to better enjoy the event.

Venus Babies

When you are looking for the most unique Baby Gifts in Bury St Edmunds, Venus Babies can provide the answer. I specialise in handmade Baby Nappy Cakes and gift sets, Christening and even Wedding Gift sets. Get in touch with me today and find out more about my range of gift ideas.

 

Nu Nu Maternity Wear

Nu Nu Maternity Wear is Harrogate’s only specialist maternity boutique and has become one of Yorkshire’s leading outlets since opening in 2005. Winner of the Yorkshire Times Award of Excellence for innovative new business in the same year, we offer an intimate and relaxed shopping experience for all pregnant women who love clothes.

Ivy Furniture

Ivy Furniture is in its ninth, highly successful year trading on-line, backed up by over 20 years experience in traditional, quality high-street furniture retailing. The online retailer offers thousands of products of the finest quality from over 30 different manufacturers.

The Cisca Saltpipe

Give Your Respiratory System a Boost! with Cisca Saltpipe™

"The Authentic Original Patented Hungarian Saltpipe Lasts upto 5 years"

Pink & Blue Baby World

Pink and Blue Baby World Ltd offer only the best brands supplying pushchairs, car seats, furniture and nursery items for parents and babies along with a range of unique gifts and accessories – including designer and organic items.The business was launched in July 2009 as the place to shop for discerning parents and their children.We aim to source and offer the best products, including many not usually found in other high street stores, with an emphasis of innovation, quality and customer service.

Cranfield University

Cranfield has a global reputation for inspirational teaching and research, industrial-scale facilities and superiorlinks with industry and commerce.And as a wholly postgraduate institution, Cranfield is the first choice for ambitious and skilled individuals wishing to enrol on Masters’, Doctorate and professional development programmes.Our passion for the areas of expertise we operate in - aerospace, automotive, defence, energy, environment, healthcare, management, manufacturing and security – makes us uniquely placed for both students and corporate partners alike.

Peninsula College of Medicine & Dentistry

The mission of the Peninsula College of Medicine and Dentistry (PCMD) is to undertake, with our University and NHSpartners, clinical education and research of the highest quality that will contribute significantly to health gain, wealth and knowledge creation regionally and beyond.

Melissa Electrical Distributors

Melissa Electrical has been established as an independent electrical equipment wholesaler for over 30 years providing a complete service for electrical installation products.

We have over 60 years experience within our industry, providing friendly, helpful advice with your requirements as well as a comprehensive lighting design service.

Bond Street Trophies Ltd

Bond Street Trophies Ltd is a dedicated trophy & medals retailer, providing a fast & efficient system for ordering & delivery of Trophies, Glassware & Corporate Awards.
The selection of the appropriate set of trophies for a sporting event or club presentation can be a time-consuming process. We have tried to simplify the selection of trophies & corporate awards with the use of online catalogues utilising easy index for viewing.

Driving Educational

Driving Education is run by Richard Venn, a former driving examiner with over 35 years of experience. Our aim is to take away the stress that many people go through in anticipation of the test. One of the ways we can do this is by being able to distinguish fact from fiction so that you are correctly informed of what the test will involve.

Woodbury Clinic

At Advanced Facial Aesthetic Medicine we are dedicated to uncompromising excellence using twenty first century laser technology and are leaders in blade freenon surgical face lifts and facial rejuvenation therapies

York House Interiors

Curtains & Blinds, Beds, Sofas and Chairs. Flooring, Carpet, Stone, Karndean, Wood etc. Kitchen design and supply.

Our service normally starts in your home where we get to know you and look at the overall balance of the room and what you would like to achieve.

 

 

S-t-r-e-t-c-h Marks

Are you looking for an affordable stretched limousine for hire? Well look 
no further. 
Our cars offer the luxury you need for a wedding or the space you need 
for a night out with the gang.


Barbe & Bald Limited

Bald's Original Furniture Balm gently restores and refurbishes scratched, tired and faded wood throughout the home without removing patina and character, and even removes most watermarks. The Balm is a subtle blend of monastic and natural oils presented in a specially commissioned bottle and sealed with the company’s own seal. The Balm is easy to apply and has an aromatic fragrance reminiscent of a well – looked after stately home.The original product has been used for many years by leading restorers and makers and is now available to those who cherish quality and tradition.

 

Insect Removal Services

INSECT REMOVAL SERVICES ticks all the right boxes for people looking to rid themselves of unwanted Wasps, Bees, Hornets, Ants, Carpet Beetles etc, as well as Rodents such as Rats, Mice, Squirrels, Moles Since its inception 2 years ago this forward-thinking company has gone from strength to strength, as founder of the company Dean Morris explained in a recent interview:  “As my father kept bees all his life, I have always had a keen interest in insects. A few years ago it became apparent to me that there was a definite gap in the marketplace for a company offering a professional service to rid people of unwanted insects and rodents.

 

 

One Stop Financial Security

If you are feeling the pressure of debt why not take back control of your life for you and your family and call usnow!  OSFS really care about you and are passionate about getting you free of debt. 

Our clients are not just numbers, they are real people with real problems and we strive to provide a professional yet friendly service.  We treat all our clients with respect and offer a truly personalised service, tailored to your exact requirements and we are dedicated to helping people in financial difficulty

 

Jk Chauffeurs

Choose JK Chauffeurs when you next need a chauffer driven car and once you have travelled with us in the luxury and comfort of our top flight Mercedes cars we are confident we will remain your first choice for a prestige chauffeuring service.  Our fully experienced drivers have exceptional route knowledge and coupled with the cars’ inbuilt Traffic Master ensure that you arrive at your destination on time.

The Garden Shop Loxfield Limited

We pride ourselves as being Sussex's leading online garden store. We have completed the hard work for you by carefully sourcing affordable, innovative and stylish gifts and will continue to do so throughout the year.

We know the items you purchase need to be appealing, made from quality materials and have a practical use.

The Society Of The Little Flower

Welcome to the Internet site of the Society of the Little Flower. We exist to spread devotion to St. Therese of Lisieux, affectionately known as "the Little Flower." Friends of St. Therese also help the Carmelites in their ministries and the education of seminarians, serving the Church as Priests and Brothers.

 

 

In 2001, the founders and directors of Goodwills Ltd, Graham Bushell and Jim Goddard, were looking to build a Willwriting company with an ethical approach to the public and their estate planning needs.

Jim Goddard, a former training and support officer for the Willwriters Association and the Association of Lawyers and Legal Advisers, and a member of the Society of Trust and Estate Practitioners (STEP) is responsible for training the Goodwills team of professionals employed in our legal department.

 

 

 

 

Dizzi Gothic

Here at Dizzi Gothic we make it our main business is to supply traditional and alternative clothing and accessories of all kinds. We have Gothic clothing from labels such as Necessary Evil, Dark Star, Alchemy Gothic and hippy style clothes from Jordash. We also design and produce individual creations to your specifications.

 

 

Mount View Academy Of Theatre Arts

Don’t miss this sizzling summer season of  Musicals, presented at the famous New Players Theatre, in the heart of London and featuring Mountview’s talented Postgraduate students.The students appearing in these productions are coming to the end of an intensive year long, four-term course specialising in Musical Theatre and they are preparing to embark on their professional careers.  This is a particularly exciting time for them and they would sincerely appreciate your support and hope to welcome you to these productions.

Tree Surgery

If you enjoy the benefits and aestetic qualities trees bring to a garden but seem to have been overrun by their size or shape it's always advised to contact a professional surgeon instead of trying to tackle them with a dangerous hand or chainsaw. Working on a number of large estates after studying forestry management, Tristan Meade Tree Surgery offer years of experience and a number of related services.

Mo's Personalised Stable Plaques

The Stable plaques are painted by hand from your own photo which can be sent via post or email.The name is also painted by hand. Mo's painted plaques have several coats of varnish making them weather proof and suitable for a stable door outside. At only £15.00 inc p&p .Please see contact page for how to order.

Telopea

Experience in business has taaught us that you cannot be good at everything so here at Telopea Managed Services Ltd we do what we do best and that is 'Managing Businesses'.

 

Wood Glaister

We are a 9 partner firm practicing in central Solihull, with Solicitors specialising in commercial property, residential conveyancing, matrimonial law, family law, employment law, personal injury, medical negligence, general litigation, commercial litigation and probate. Our company ethos is to provide, you, the client with a professional, efficient, and, above all, personal service at a competitive price. read article no.1 - read article no.2 - read web exclusive

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KFE LTD

The Perfecta product provides Gastec certified high efficiency pans which can reduce the proprietors’ gas bill by 50 per cent per year. The professional system achieves this whilst improving fat quality with an integrated
filtration system and a vast increase in fish and chip production.
Dutch designed, Perfecta is Government agency approved and adheres to strict European regulations for quality.

 

Polden Hills Veterinary Centre

Polden Hills Veterinary Centre is owned and run by veterinary surgeons John Smith and Margaret Walker. John and Margaret purchased the small animal practice, previously known as MacKay and Taylor Veterinary Surgery, in December 2009.

 

 

RT Law Solicitors

R.T. LAW is a family firm, we aim to be accessible and to help you in a professional but warm and friendly manner. We want our clients to be comfortable in dealing with their Solicitors. We want to avoid them feeling isolated within an often confusing and complex Legal System.

Mirrors for Training Limited

Mirrors for Training Limited, specialise in the manufacture, and installation of commercial mirrors, to the leisure industry, including dance, performing arts, home gyms, our mirrors are manufactured to the highest standards, competitively priced and are also popular with schools, councils, hotels, shops, showrooms, museum, restaurants, salons and equestrian arenas.

 

Chew Valley Hire

We manufacture and supply super luxury mobile toilet units for small and major events throughout Southern England.We provide portable toilets for events from Cornwall to Birmingham, from South Wales to London and beyond.Catering up to 20,000 people per day we offer full attendant or valet only service to keep the mobile toilet units in perfect working order for the full duration of the hire period.

 

Gopak

Gopak Ltd (formerly known as P S Le Fleming Shepherd Ltd) started out in 1947 as a one man operation manufacturing innovative pieces of furniture from a small workshop in Mayfield, East Sussex.

These items were primarily sold through retailers such as Heal's of London and Libertys.

Little Patch


Little Patch is a small business offering ethically made baby & children's wear with Kelly's unique British Applique Designs. All garments are finished by hand. Customers are provided with high quality products and excellent customer service. The service is designed to meet high expectations and cater for the individual.

No Hassall Letting

We are a local, independent business specializing in Residential Lettings and Property Management covering Bromsgrove, Hanbury, Redditch, Alvechurch, Droitwich, South Birmingham and surrounding areas. We are a family business run by an experienced, born and bred Worcestershire team, with a wealth of local knowledge.

Kernowrat

Kernowrat are the UK importer for Piranha Propellers. Piranha Propellers have been producing High Performance, Durable, Versatile, Economic,
Composite, Modular propellers with replaceable blades for 20 years
During our relationship with Piranha we have benefited from and been thoroughly impressed
by the fantastic products and excellent customer service provided.