The Frasers Group has been vocal in its criticism of the UK government’s handling of the coronavirus crisis and its impact on retailers. The finance chief, Chris Wootton, expressed frustration over the delay in reopening stores, warning that this could spell disaster for many businesses in the retail sector.
During an interview with ITV News, Wootton emphasized that the two-week postponement of store openings could result in a substantial loss of sales for retailers. He even suggested that the controversy surrounding Dominic Cummings, a key advisor to Prime Minister Boris Johnson, may have further delayed the reopening of non-essential stores.
Wootton lambasted the government for sending mixed messages and questioned the decision to prioritize the opening of certain types of stores over others, such as allowing car showrooms to open earlier. Analysts have also cautioned that the extended closure period will significantly impact retailers, particularly those in the clothing and footwear industry.
Sofie Willmott from GlobalData warned that the continued closure of stores will lead to missed sales opportunities and increased discounting once businesses resume operation. This could have a lasting effect on the retail sector, with a projected drop of over 40% in offline spending on clothing and footwear this year.
Helen Dickinson, the CEO of the British Retail Consortium, echoed concerns about the tough road ahead for retailers post-reopening. Wootton echoed these sentiments, stressing that the delayed reopening could be the final nail in the coffin for struggling retailers.
He criticized government officials for their indecisiveness and lack of consistency in following their own guidelines. Additionally, Wootton defended the Frasers Group’s actions in seeking clarification from the government early on during the crisis, arguing that the company was unfairly targeted for political reasons.
In conclusion, the criticisms voiced by the Frasers Group shed light on the immense challenges confronting retailers as they grapple with the economic fallout of the pandemic. The delay in reopening stores poses a significant threat to the industry, with many businesses teetering on the brink of collapse.
To learn more about the impact of the coronavirus crisis on the retail sector, check out this BBC article and this insightful piece from Retail Gazette.
