Our resilient retailers look to the future

RETAILERS are the most bullish about their third quarter prospects out of all small to medium-sized enterprises (SMES), according to Barclays’ data.

It said retail SMES expect their revenues to grow 16 per cent over the July to September period, compared to just five per cent for all sectors.

They were more optimistic about their sector, with 33 per cent having a positive outlook, versus the 24 per cent average for all businesses.

As a sign of their confidence, 40 per cent of retailers are looking to extend their product ranges over the next 12 months, compared to the 25 per cent average for all sectors.

The bank’s payments division, which carried out the survey, added that small retailers were the most alert to the need to change their business models due to the coronavirus. It said 33 per cent of retail SMES had responded by increasing their focus on online sales, against the 15 per cent average for all businesses.

According to Barclays, SMES in general are more optimistic as their second quarter sales were not as bad as they had feared. At the start of April, small businesses forecast a 28 per cent fall for revenues for the quarter. However, second quarter losses were only 14 per cent on average.

So 36 per cent of small firms report a positive outlook for their business in the current quarter, up from 21 per cent during the previous period.

Rob Cameron, chief executive of Barclays Payments, said: “SMES are once again proving their resilience and role at the heart of the UK economy, especially in the face of coronavirus.”