Press releases

A good year for Britain’s retailers?

Positive signs about the retail economy in 2007 are beginning to emerge from Britain’s retailers according to research released today by Barclaycard Business. The research has found that a third (32 per cent) of Britain’s retailers are optimistic that the retail economy will improve in 2007. However, opinions are divided with a similar percentage (31 per cent) predicting that the economy will get worse for retailers over the coming 12 months.

The research comes from the first Barclaycard Business Retail in Detail Survey; an annual survey of more than 1,000 retailers across the country. The aim of this new survey is to build a comprehensive picture of the nation’s high street and to gauge the views of retail owners in the UK today.

Barclaycard Business found that retailers were in agreement on key changes needed to improve the health of the retail economy in 2007: of those questioned in the survey more than a third (39 per cent) voted for lower business taxes and 37 percent voted lower interest rates to kick-start the retail economy. The current pressures on world oil prices have also been felt by many retailers - nearly a third (31 per cent) said that lower oil prices would have a positive effect on the nation’s high street economy.

Bill Thomson, Commercial Director, Acquiring from Barclaycard Business commented on the results;

“Given the tough year on the high street the findings show an encouraging optimism that 2007 will be a better year for the business sector.

“Whilst some retailers are unsure of the prospects for the retail economy in 2007 many make clear that lower business taxes and lower interest rates are what’s needed to kick-start Britain’s retail economy.”

New business start ups were noticeably optimistic about the retail economy in 2007. Of those retailers that had been operating for less than a year more than half (53 per cent) were optimistic that the retail economy would improve in 2007; this compared to just over a quarter of retailers that had been in business for more than 15 years. More start ups also viewed the retail economy in 2006 as healthy: more than a third (34 per cent) viewed the economy as healthy or very healthy compared to just 20 per cent of all retailers.

Bill Thomson added;

“It is encouraging that so many new businesses are entering 2007 with a positive outlook towards the UK economy. The first couple of years for start ups are extremely important and a healthy economy can significantly improve the chances of developing a successful business.”

When asked what new businesses thought would help the health of the economy the majority cited lower interest rates over business taxes. Of those questioned more than half (53 per cent) chose interest rates to improve the health of the economy compared to a third (33 per cent) who voted for lower business taxes.