A new report from analyst Plimsoll indicates a potential loss of 16,859 jobs in the fashion retail industry. The report also provides advice on how to cling on in there.
Plimsoll maintains that the job losses may be necessary to align costs with sales in an environment where raw material, distribution and energy costs are all rising but sales and more emphatically profits (due to discounting) are falling.
In the analysis the performance of each business is reviewed in terms of sales versus costs and the report concludes that 296 of the businesses surveyed are in danger of letting their costs outweigh sales.
Plimsolls advises that companies in the fashion retail sector need to aim for at least £62k of sales per employee to remain profitable.
According to the report 405 companies were doing well with sales per employee running at well over £112,000.
The 292 companies in the danger zone do need to act quickly to save themselves from the brink says Plimsoll. Jobs are the biggest expense for most companies and so the quickest way to save money would be to lay people off.
The full Plimsoll Analysis report, which names the retailers and includes full details of their financial performance, is available from:
email email@example.com or telephone: 01642 626422. The report costs £350.
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