This Is Guernsey

By Tom Edwards

RETAILERS are facing uncertainty this year because of zero-10 and a slowdown in the global economy. Chamber of Commerce retail sub-committee chairman Tony Creasey said that while Guernsey was preoccupied with domestic tax matters, it was not immune from wider concerns.

UK retailers such as John Lewis have suggested that last year’s pre-Christmas rush could soon be forgotten as consumers rein in spending.

A report by the British Retail Consortium has found that the economy has jumped to the top of consumers’ worries for the first time in at least four years.

Mr Creasey said 2008 had the potential to be a difficult year for Guernsey retailers as well.

‘It’s difficult to relate to statements made by these major players as obviously they employ thousands of staff and their experiences are very different to the local scene,’ he said.

‘It was good that interest rates have been taken down a notch recently, with the possibility of further cuts.

‘Many people are talking about a slowdown in the global economy and naturally we are not immune to that.

‘But obviously the Guernsey business community has been focused on the publicity of zero-10 and our own domestic rates.

‘The local situation is very delicate and needs to be handled sensitively.’

According to the Daily Mail, UK retailers had braced themselves for a dire Christmas as winter sales started early and high street chains resorting to their deepest price cuts in three years.

Sales of white goods such as fridges and washing machines were already sluggish at the start of the season, reflecting the weakening UK property market.

Mr Creasey said there wasn’t a great deal of evidence to suggest the same was happening in Guernsey.

‘A lot of retailers have had special offers going on, but that is fairly typical from previous years,’ he said.

‘To be perfectly honest from a local perspective we have probably seen a similar pattern to what has happened in previous years.

‘It might be different with white goods, but as far as fashion brands are concerned it’s in line with the last few years.’

The poor weather had played a significant part in the lead-up to the holiday season, added Mr Creasey.

‘The rain kept some shoppers away on occasions, although quite a few brave souls did come out.’