Retailers hit by snow and ice
THE cold snap could not have come at a worse time for retailers in the critical Christmas trading period, with some facing financial meltdown as consumers avoid the high street.
While insurance group RSA estimated the cost to the economy of the bad weather to be around £1.2bn a day – it may prove to be the straw that broke the camel’s back for at least one well-know chain.
Already troubled, retailer JJB Sports – until recently ran by Yorkshire-based Sir David Jones – said the bad weather was exacerbating an already dire situation, and it may breach its banking covenants.
At Sheffield’s landmark Meadowhall Centre some retailers decided to close early on Wednesday, during the worse snow flurries, but it was opened on Thursday and today.
A spokesperson said data was not yet available on the impact of the bad weather on visitor numbers.
Despite fears in some sections of media regarding food supplies, Yorkshire’s big two food multiples, Asda and Morrisons, said deliveries to stores were getting through, with some delays.
An Asda spokeswoman told TheBusinessDesk.com: “We’ve seen some delays, but not a huge impact, supplies are getting through and we’ve not had to close any stores.”
Bradford-based Morrisons added: “There has been a huge effort by our staff to ensure business as usual – we’ve used snow ploughs in some locations to clear car parks and make sure we can deliver to stores.
“Sales of table salt and de-icer have obviously gone through the roof.”
Aon, the global financial services group, said it was crucial for all businesses to draw up a plan to cope with a sudden change in circumstances which could hit operations.
It warned too, that lost trading could tip some weak businesses over the edge.
Vincent West, head of business continuity at the company said: “Businesses that may already be struggling because of the economic conditions may find that several days out business because of snow may be the thing that tips them over the edge.
“We are experiencing more and more business interruption events: two Big Freezes and the Icelandic volcano this year alone. Businesses need to ensure they are planning, as much as possible for these types of events.”
During the remainder of the cold snap, Aon recommends that businesses should be: Maintaining contact with their stakeholders, staff and customers to manage expectations around revised delivery dates or service availability; thinking now about how they plan on dealing with backlogs once the weather improves and constantly evaluating where business continuity plans are working and where they are not.
