What Do You Believe?
Insolvencies in the UK retail sector are up by nearly 20% over the past year due to higher interest rates, according to accountancy firm Mazars. Nearly 2,200 retailers collapsed in the year to January, a sharp rise from 1,843 the previous year. The increase in Bank of England interest rates to 5.25% has exacerbated existing pressures from reduced consumer spending and rising labour costs due to inflation.
On the other hand……..
Tesco is set to announce increased yearly profits of approximately £2.9bn on 10 April, up from the £2.63bn reported for the prior year. This increased valuation comes despite a slowdown in food price inflation, and is attributable to factors including Tesco’s investment in pricing. Analysts, including Sophie Lund-Yates of Hargreaves Lansdown, believe Tesco’s price-cutting programme may continue to drive growth, with investors watching for signs of volume uplifts.
What Do You Believe?
