Ads
Published
Jul 25, 2018
Download
Download the article
Print
Text size

40% of UK footwear retailers are making a loss, research finds

Published
Jul 25, 2018

Footwear businesses are amongst the UK’s worst-performing companies, with an estimated 40% making a loss, according to business analysts at Plimsoll Publishing.


Photo: Schuh


Based on data from Companies House and Plimsoll Publishing’s analytical tool, footwear is the 9th industry with the highest proportion of loss making companies in the UK, after school academies, new media, rugby clubs, football clubs, oil & gas, newspaper publishing, cycle shops and onshore wind farms.

However, the proportion of lossmaking companies is significantly higher in the worst performing industry, school academies, where almost 60% of companies are in the red.

According to Plimsoll, there are numerous potential reasons for the losses, ranging from weather conditions to the cost of machinery and raw materials.

“It is essential for business continuity that buyers in these sectors understand where supply chains may be vulnerable in order to put in place back up plans,” commented Plimsoll’s senior analyst David Pattison.

The data comes after the post Brexit vote decline in the pound pushed up the cost of imported goods, hitting manufacturing firms who use imported raw materials. Footwear retailers, along with fashion and general retailers, are also suffering from weak consumer spending and growing overhead costs, such as business rates.

Copyright © 2024 FashionNetwork.com All rights reserved.