Alongside and as part of our other Consultancy Services, FSP provides reliable advice on the financial health of retailers, to enable our clients to make informed decisions about their business relationship with retailers - for example, can a prospective tenant afford the rent?
FSP’s ability to do this is based on the vast amount of financial data it holds on retailers. FSP has been consistently monitoring the published accounts of retailers for more than 5 years. At the simplest level, this provides key financial data from the accounts as filed with Companies House, including turnover, gross profit and operating profit. FSP detailed analysis supplements the basic data and provides some relevant measures of financial health. The key summary measure is the Wealth Creation Index (P2), which is defined by the Department for Business Innovation and Skills (BIS) as the ratio of Value Added to the costs of employees and depreciation. The BIS Guide positions a retailer’s financial health within a range from Very Worrying to Very Strong.
With historical analyses, FSP can plot a financial health trend for each retailer and thus identify where poor financial performance is just a blip, or part of a steady trend.
Financial information is just one piece of the big picture. FSP analyses are data to supplement the experienced FSP consultants who can spot the difference between a failing retailer and one using all its resources to grow.
Combining financial analysis with location data from the Local Data Company, FSP can provide a view not only of the financial health of individual retailers, but also of a town or centre as a whole. More information can be found under Retailer Risk Analysis
To find out how financially healthy the retailers in which you’re interested are, why not take membership of FSP’s online retail intelligence service, SnapShop? The example retailer record shows you what information you can expect to find.
Please Contact Us for more information about FSP, SnapShop, Retailer Risk Analysis or any of our other Services.