A third of FTSE general retailers have issued warnings in the past 12 months, compared with 24 per cent in 2006, according to a report by Ernst & Young.
It warned that the retail sector is one to watch in the final quarter of this year, because consumers are expected to remain cautious in the run-up to the crucial Christmas period.
Ernst & Young head of corporate restructuring Liz Bingham said: “Retailers will need to develop strategies to cope with a slowdown in consumer spending. An unwavering focus on customer service, tight control of inventory and product availability across all channels, and a focus on margins with a strategic approach to pricing will be crucial to success. Retailers are set to play a very difficult game of discount chicken against consumers this winter.”
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