Companies Still Keeping Margins Low


While recent reports suggest that market conditions are improving and consumer confidence is on the increases a recent report conducted by the Forum of Small Businesses suggests that British companies are still not profitable.

According to the CBI – Confederation of British Industry – companies in the UK are still finding it tough to maintain profitability. This is a consequence of many market factors; for example the rise of aggressive discounting throughout the recession and the increase in the number of consumers who are going on line to research and make purchases. As a result companies are under increasing pressure to be competitive on price and compete with online e-tailers.

The report also found that business owners in the UK expect that their companies will experience a further drop in profitability as the UK continues on its path to economic recovery.

We speak to Lorraine Jones, founder and CEO of online retail emporium ‘Jessie James’; “The fact is the recession changed our entire business proposition. It was no longer enough to have a presence on the high street – we were competing with online retailers who could afford to reduce their margins as they did not have the same overheads as us. So it was a case of if you can’t beat them, join them.

“I find it astonishing that in the current market context some businesses still do not have a website.”