FORMER Mark & Spencer executive chairman Sir Stuart Rose has warned Christmas could spell the end for some retailers but insists there are huge opportunities for people looking to start new businesses.
Sir Stuart acknowledged the state of the global economy but urged entrepreneurs to focus on their own businesses rather than worry about the wider economic picture.
He told TheBusinessDesk.com: “Recessions have a positive benefit in some respects.
“It sounds a bit perverse but it’s Darwinian, it has caused some businesses which didn’t deserve to survive to go under and created a bit of breathing space for new exciting new businesses to come through.
“I don’t believe that if you’ve got a good idea there isn’t a place to get support for it.”
Sir Stuart was speaking in Leeds at an event organised by UKTI highlighting opportunities available to the fashion, retail and design sectors.
“If you are sharp these days you can make money in finance, if you are sharp you can make money in property, you can make money in IT and, in my sector, if you are sharp you can make money in retail,” he added.
“It is about having the correct covenant with your consumer, about providing them with quality and value and if you get that right they will spend money with you. “How many iphone 4Ss were sold last weekend? Thousands, and that is during a recession when the phones are £500 each.”
The downturn has already produced some high profile high street casualties and, with consumer spending under pressure, the Christmas shopping period could prove critical to the future of some stores.
Asked if he thought more retailers might get into difficulties this Christmas, Sir Stuart said: “I think they will. Sadly, I think there will be some difficulties but where you have companies with strong brands, companies that are listening to their consumers, who keep their costs under control, keep their inventories under control, they will be alright.
“They will manage their margins and get through but it’s clearly not going to be a bonanza Christmas.”
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