In the national press over the last month it was asserted that consumer spending not productivity was responsible for driving UK growth.
UK productivity, apparently, has declined over the last 10 years.
In retail, profitability has been declining as a percentage of revenue; we have not seen revenue increases mirror cost increases:
- Sales have migrated from stores to online. Growth in e-commerce has increased multi-channel costs without compensating decreases in offline costs
- Increases in promotions and markdowns (and general price competition) has reduced margins
- UK salaries and costs have increased
- Economic decline has for some retailers been mirrored in a sales decline
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors.