A Compromising Christmas for Company Formation

The retail sector has been on the front-line of the recession, since it began. High street juggernauts such as Marks & Spencer and HMV have announced record losses over the past year, and business analysts are predicting that it will be far from a merry Christmas for more high street retailers.

In such a hostile economic context, it is tempting for brands to begin aggressive price cutting, not only to keep up with their competitors who are indulging in similar promotional activities, but also to compete with online retailers. However, this is a short-sighted and potentially damaging strategy, says Martin Ezair, business trend analyst from Southborough Business School. He comments;
“Obviously times are hard on the high street, and constantly waiting for festive sales that never come is incredibly disheartening for small businesses. However, it is vital that businesses don’t have the knee jerk reaction of cutting prices by to much. Margins must be maintained and brands should not be compromised.”

“I do think Christmas will be tough this year, but not as bad as is being predicted. Brands must attempt to remain positive and think about the bigger picture.”