Retail SMEs are the least optimistic for 2015

Small and medium-sized retailers are the least optimistic for growth in 2015, according to a new survey by YouGov commissioned by Npower Business.

The research found that SMEs in the retail sector are lagging behind the UK’s manufacturing, business services, and hospitality and leisure sectors in terms of confidence for 2015, with only 43 percent of the retailers saying that they expect business turnover to increase in the next year, the lowest of all sectors surveyed.

With the proportion of those who say turnover will decline (17 percent) was the highest amongst all sectors. However, despite of these worries, retailers ranked the lowest on succession planning the survey found, with less than one in seven (14 percent) having such a plan in place.

Some SMEs in the retail industry are also worried that they will not be able to access the right staff and mix of skills to help them achieve their digital ambitions in 2015. The data shows that only two in five (40 percent) retailers said they were confident they would be able to access the right digital skills.

Other worries for retailers include existing red tape, cited by 35 percent, recruiting new talented staff (34 percent) and retaining talented staff (25 percent).

Jason Scagell, director of Npower Business, said: “Everybody knows how cutthroat the retail market is, and how much pressure smaller and more traditional retailers face from multi-nationals and online-based competitors. That’s why it’s so important for retail firms to be able to adapt to changing consumer behaviours, such as the rise of smartphone shopping and ‘showrooming’.

“In 2015, digital skills in particular must be a priority for all retail firms, not just the corporate giants. It’s vital that SMEs in the retail sector give urgent thought to how they can win the largest share of digital customers in the year ahead. For this, a succession plan should be a key part of their strategy.”