According to the latest figures, retailers had a challenging December, with most reporting lower sales than expected, particularly in the fashion industry, although homeware saw something of a boost, with consumer demand for decorations and tableware on the rise.
In fact, so disappointing were the results that maternity retailer Mothercare plc’s turnaround plan seems to have suffered a setback after sales and shares slumped.
In its interim management statement for the 12 weeks to 4 January, the retailer saw like-for-like sales fall by 4 per cent and total worldwide group sales by over 6 per cent.
More importantly, in stark comparison to other retailers, Mothercare announced that its online sales had fallen by 1 per cent over the period, which caused its shares to plummet by 30 per cent.
Retailers tend to struggle in the New Year, when high street shops have issues revolving around rent arrears and lack of spending following the Christmas boom.
The January Quarter Day, or the day on which the quarterly rent bill must be paid, is predicted to bring even more gloom and doom for the retail industry, which has suffered more than most during the recession.
Figures produced late last year by the Centre for Retail Research warned of a 15 per cent increase in insolvency levels during 2014, predicting that the number of companies declared as insolvent will rise when zombie retailers, or those who have been hanging on by the skin of their teeth and are insolvent in all but name, fail to pay their rent and VAT payments this month.
In fact, it is likely that the first quarter of 2014 will be make-or-break for many firms, a thought that will no doubt be weighing heavily on the minds of the Mothercare Board.