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Retailers remain downhearted about the first quarter of the year, a report reveals.
According to the latest Dun & Bradstreet Business Expectations Survey, retailers are not as hopeful as they’d like to be about their performance in the first quarter of 2011.
The survey shows that 55% of retailers’ pessimism is fuelled by slowing demand. While 34% are concerned about wages and salary growth, a massive 56% expect online sellers to impact mainstream retail businesses.
Retailers have good reason to be cautious, with new research by eBay and Gumtree revealing a third of people plan to use online sites to sell unwanted Christmas presents.
Dun & Bradstreet chief executive Christine Christian said:
“High street retailers are facing increasing competition from online stores, compounded by the fact that they are dealing with overheads not applicable to e-commerce.”
“The situation is likely to deteriorate for those retailers unwilling or unable to adapt to changing consumer behaviour.”
Despite the retail sector recording relatively strong results for the September quarter of 2011, sales expectations for the first quarter of 2012 are down 15 points while profit expectations decrease to 22 points compared to the same quarter in 2011.
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