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| Jingle Hells! |
TIS the nightmare before Christmas—and it’ll wipe out 100 High Street firms EVERY DAY, experts predict.
Small businesses will be frozen out as hard-up families CUT BACK on their spending, big stores aggressively DISCOUNT and online shopping EXPLODES.
And top industry gurus forecast last night the appalling human cost will be more than 2,000 jobs a day vanishing as desperate companies struggle to survive.
The influential Federation of Small Businesses (FSB) forecast a staggering 2,800 firms will go bust in the Christmas trading period from mid-December to mid- January. Head of public affairs, Stephen Alambritis said: “This is the mother of all Christmases for small businesses. It really is make or break time.”
Currently 60 businesses go under every day—a whacking FIFTY PER CENT increase on last month. But a fearsome avalanche of failures is expected in January.
Alambritis explained: “Bank managers will have their beady eyes on how much trade small concerns do over Christmas. If it doesn’t go well we’ll see a huge spike of businesses being closed down after banks do their sums.”
With the recession already biting, Vicky Redwood, UK economist at top research consultants Capital Economics, warned: “We’ll probably see around 200,000 job losses from November to January.
“It’s shaping up to be a pretty awful Christmas for retailers and families. The amount spent on the High Street will be significantly cut.”
Even big brands, iconic British firms from BT to Rolls-Royce, have announced thousands of job cuts. Howard Archer, chief economist at forecasting wizards Global Insight, expects unemployment to hit two million by Christmas.
“Every day it seems more redundancies are announced,” he said. “Christmas looks bleak and the rising trend in businesses going under will undoubtedly continue.
“Consumer spending will be weak due to serious pressures of fast rising unemployment, higher utility bills and food prices, plunging house values and increased debt.”
A survey by supermarket giant Morrisons today reveals 90 per cent of Britons are WORRIED about the cost of Christmas this year.
Retailers have reacted by slashing prices. Last week Marks & Spencer, Debenhams and Bhs launched an aggressive price war to lure cash-strapped customers. Debenhams admitted they all face “the worst Christmas ever”.
But cut-throat price slashing plus a 15 per cent surge in online shopping could drive thousands of small traders under. The FSB warned Britain could be filled with “ghost town High Streets” and urged families to support local shops on the verge of collapse.
Stephen Alambritis warned: “Small businesses can’t keep up when big companies offer huge bargains. We’re urging customers not to go just for price but quality, and the personal shopping experience. People will want to pop to the shop round the corner NEXT Christmas, but it won’t be there.
“We’re urging local authorities to encourage shoppers by suspending parking restrictions and jazzing up High Streets with lights and decorations.”
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