The effect of the recession on the retail trade

Abstract

Decline in consumer demand and severe pressure on costs are — not surprisingly — the two aspects of the recession which, according to a survey by Gordon Simmons Research, are hitting retailers most hard. In the immediate future, the overall pattern indicates an increase in store investment and improvement to compensate for the slowing down in recent years. And of course there will be growing emphasis on larger units, and the continued growth of credit. This article is based on personal interviews conducted by GSR executives, during November and December 1980, with top management in 12 major retail organisations (listed at the end of this article). These retailers, although few in number, represent a high proportion of retail turnover because of the concentration of the trade. They cover a wide cross‐section of retailing: supermarkets, department stores, electrical goods outlets, variety stores, men's and women's fashion. The survey examined these retailers' reactions to the recession, the effect of the economic climate on their policies, and likely retail developments in the 1980s.