As the economy faces deepening turmoil, new research indicates that the sector likely to be hit hardest by the crisis is retail.
A poll by GE Commercial Finance and the Society of Turnaround Professionals – who rescue companies in difficulty – reveals that 63% of the trouble-shooters believe that retailers are the least prepared for a downturn in the economy. A long way down the list, with 13% of the score, are the financial sector and, 9%, manufacturing.
“With the last major slump in the economy having been in the early 1990s, many of today’s business managers and owners haven’t had to deal with the consequences of softening demand and limited credit availability,” commented STP chief executive Christine Elliot. “Being able to successfully deal with these more adverse conditions will require businesses to focus on their cash flow, costs and markets.”
Over half (52%) of the turnaround professionals believe UK firms are unprepared to deal with tough economic times.