Economic crisis 'hits sole traders'

Date: 16th July 2009

Sole traders have been hit disproportionately hard by the downturn in the retail sector, a Barclaycard report indicates.

According to a new poll from the firm, 77 per cent of shopkeepers believe that larger firms have a competitive advantage in the recession due to their ability to offer sweeteners for customers, such as loyalty schemes.

Among sole traders, the number of people feeling disadvantaged goes up to 80 per cent.

In all, one in three said that they would sign up to a loyalty scheme if they were able to financially.

More generally, 62 per cent of retailers told Barclaycard that they had been "impacted" in some way by the downturn, whether through declining sales or customer footfall.

"Our research shows that there is a demand for a loyalty scheme that is simple to use and will benefit retailers whether they are a corner shop, restaurant or supermarket," Dan Salmons at Barclaycard commented.

Latest unemployment figures show that 2.38 million Britons were out of work at the end of May, a 14-year high.

Personal debt distress is also on the up, with mortgage lenders predicting repossessions to hit 65,000 this year from 40,000 in 2008.