Time to roll up your sleeves

The Arcadia boss issued a stark warning for the retail market by saying the worse is yet to come for the high street. As if retailers need any more telling.

The warning came during a week when shares in non-food retailers have taken a hammering, after analysts issued notes slashing profit projections and encouraging shareholders to sell.

Debenhams, Next and Sports Direct were among those fashion retailers that Citi downgraded. It also said consumer spending would be weaker next year.

Seymour Pierce said it thought sales at Next and Marks & Spencer have been a “major disappointment”. And so, Next shares tumbled to their lowest level for five years.

And let’s not forget the favourite barometer of the high street’s health: John Lewis, which reported a month of slowing sales. It is, said Green “very, very tough” out there. He added an extra “very” for emphasis when discussing the outlook for the mid-market, in which his Bhs chain sits alongside retailers such as the snubbed Next, M&S and Debenhams.

So, what can we expect now? “We still haven’t seen a major profit warning,” offered Green. And we are seeing savage discounting and deeper price slashes earlier than ever, as retailers fight to clear stock.

All fingers will be crossed for clement weather, although Green’s comment suggests that the recent sunshine has not even offered the superficial lift to sales suggested in the BRC’s last set of sales figures.

What’s more, June’s quarterly rent day is looming, when, undoubtedly, numerous fashion retailers will be going to their landlords, cap in hand, wanting to pay monthly.

It was the last quarterly rent day in March that the downturn, early fall of Easter, unseasonal weather and rent-day demands combined to create the perfect storm and contributed to retailers hitting the buffers.

Nothing has improved in the last quarter; in fact, the rise we may see this week is in sales of Xanax.

However, amid the gloom it should not be forgotten that Ted Baker and JD Sports both released robust results recently. Ted Baker does what it does best – appeals to a young, funky consumer and offers a different in-store experience. JD Sports also appeals to a consumer that will still make discretionary purchases.

As Green said: At the end of the day, are people going to stop shopping for clothes? No, they are not. It’s about being great and giving people a reason to shop.”

Keep it new and fresh, says Green. And keep it young and stay clear of the mid-market, it seems.