SPEKE-BASED online and catalogues retailer Shop Direct is bracing itself for a contraction in sales this year of up to 5%.
Chief executive Mark Newton-Jones believes consumers will rein in spending in the face of even more cost of living increases and the rising fear of unemployment.
He said: “We’re taking a more pessimistic view of 2012 than the year just gone because of the cumulative effect of austerity measures on customers, as well as fuel costs, electricity and gas bills, added to job losses, which we believe will increase, and the backdrop of all this uncertainty in Europe which will combine to make this year harder than last.
“We believe there could be up to a 5% reduction in sales year-on-year and the market will be terribly difficult for retail and customers.
“We will reduce our stock levels and marketing and if we find things looking a bit better we can buy stock and react very quickly. I only have to fill two warehouses and not 400 stores.
“That would be a lovely problem to have if that occurs, but the likelihood is very slim.”
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