Financial Health of Retailers

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 held on retailers. We have been monitoring the published accounts of retailers for a number of years now. At the simplest level, this gives us key financial data from the accounts as filed with Companies House, including turnover, gross profit and operating profit. Our detailed analysis supplements the basic data and provides some relevant measures of financial health, the key summary measure being 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. This BIS Guide will identify 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 a piece of the big picture. Our analyses are just one part of the wealth of data we hold, which, with our consultant experience, can spot the difference between a failing retailer, and one using all its resources to grow.

 

Combining our 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? Our 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.