retail environment
UK in grip of 'worst' supply chain crisis
Britain is in the grip of the worst supply chain crisis in living memory with more than 25 per cent of UK retailers only four weeks away from going bust, according to a new survey.
The study, by retail technology provider Brightpearl, suggests that 85 per cent of retail businesses have been impacted by supply chain issues in the past 12 months.
A further 46 per cent of retailers – both in-store and online – have experienced stockouts which has led to a decline in sales.
The biggest supply problem for retailers is a shortage of goods, experienced by 68 per cent of the 500 retailers surveyed for the research.
Other issues identified by the report include: shipping costs, suffered by 64 per cent of firms polled; lengthier delivery times for products, experienced by 54 per cent; suppliers selling out-of-stock, identified by 46 per cent of respondents; and the increased prices of raw materials, highlighted by 40 per cent.
“We are in the worst supply chain crisis that any of us can remember and there is no sign of the problems easing before the end of the year,” said Derek O’Carroll, chief executive of Brightpearl. “For retailers, the problems could be particularly severe as they prepare for autumn and peak trading in the months building up to Christmas.
“We are still in the relatively early stages of this crisis with the impact of the war in Ukraine and other global factors only just starting to really hit home.”
