CB Richard Ellis sees 'bottom' of market for retailers

Date: 1st September 2009

The fortunes of retailers in the UK are likely to remain gloomy for years to come, new analysis from CB Richard Ellis suggested today.

Peter Damesick, head of research at the real estate specialists, added that he believed that the market could have reached "bottom" in the ongoing credit crunch and recession.

This downbeat assessment follows the release of a report last week from the Confederation of British Industry (CBI), which found that stocks at high street retailers had fallen to levels close to actual customer demand.

The business group also found that 16 per cent more shopkeepers felt that sales had fallen, rather than risen, over the year to August - and that a similar balance expected volumes to continue to drop this month.

Mr Damesick said: "Retailers, as far as sentiment is concerned, are feeling that at least it's got about as bad as it's going to get, and they're not, it doesn't seem from this survey, anticipating significant further deterioration."

He added: "We may have reached a bottom for the present."

The CBI also found that two per cent more firms expected business to deteriorate over the next three months.

This is the smallest negative balance measured by the survey since November 2007.