08/08/11
By Karen Moss
The lack of economic growth that has affected High Street sales this year has hit homeware businesses the hardest, research shows. Habitat and HomeForm were two of the highest profile retailers plunged into administration in June, and Lombok has now closed half of its stores.
Baker Tilly’s analysis of the situation on the High Street shows that Carpetright continue to report challenges brought on by the economic conditions. According to their research,This is in spite of it being a time of year when consumers typically spend on their homes.
Rupert Eastell, Head of Retail at Baker Tilly, says: “Consumers have to make increasingly tough choices about how and where to spend their money. The harsh reality is that most spending on homewares can be delayed or put off altogether.”
Other findings show how the ‘two speed’ economy is increasingly impacting upon businesses large and small. Over 65 per cent of retail business failures in Q2 of 2011 were based outside of London and the South East, with the North West the worst affected region.
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