Retailer Risk Analysis
Analysis by FSP shows that the financial accounts of 30% of multiple retailers (chains), with a combined total of almost 6,500 stores, are Very Worrying. FSP define retailers classified as Very Worrying as "At Risk" retailers - or, those who can be ascertained as being financially unstable.
By linking these Very Worrying retailers to the locations of their stores, FSP has produced the first geographical assessment of the impact of At Risk retailers on towns and shopping centres. While the analysis identifies some regional and size related drivers, locally more complex factors are at play.
FSPs Retailer Risk Analysis reports are vital tools for asset managers, leasing agents and local authorities, and can be produced for shopping centres, town centres, retail parks and shopping parks. Each report includes a guide to the BIS health of a retailer, plus key supporting financial figures and analysis (details of which are available upon request.)
Retailer Risk Analysis is the first step to understanding the stability of a retailing location. Local factors will also impact including level of competition, retailer ‘fit’ with the local consumer and rental tone. Once the overriding picture is clear FSP can produce bespoke information at unit level and produce solutions to reduce the proportion of income ‘At Risk’.
Town Risk Report
Sector Risk Report
Bespoke Reports
Price List
The Town Risk Report analyses towns and shopping centres by listing ‘At Risk’ retailers and benchmarking the proportion against national totals. The report enables asset managers, shopping centre managers, town centre managers and those responsible for economic development and regeneration to understand the scale and nature of potential challenges by benchmarking overall retail risk against national rankings and peer groups of similar towns.
The Sector Risk Report lists ‘At Risk’ retailers by their predominant merchandise group (e.g. Clothing & Footwear, Household Goods and Personal Goods). The report enables suppliers to identify which customers are in difficulty, retailers to monitor the condition of competitors and investors to identify higher risk investment opportunities.
FSP also produce Bespoke Reports which focus upon lists of up to 25 specified retailers.
Availability and Price
Retailer Risk Reports are exclusively available to SnapShop subscribers, and a price list can be found here.
For more information about these reports, or to ask us about a subscription, please .
Click here to view the latest Retailer Risk Analysis Financial Health Warning press release.
Definitions
The Department for Business Innvoation and Skills’ (BIS) Value Added Scoreboard measures companies’ efficiency for wealth creation (P2). As a rough guide to financial health using P2: 175+ is Very Strong; 150 to 174 is Healthy; 125 – 149 is Fairly Healthy; 100 to 124 is Head Above Water; less than 100 is Very Worrying. See www.innovation.gov.uk/value_added.
Companies have been identified as Very Worrying by applying the BIS Wealth Creation Efficiency Ratio to the financial accounts of over 600 multiple retailers. The Very Worrying category includes all companies whose Value Added (sales less cost of bought-in goods and services) is less than the cost of staff and depreciation. With basic operating costs not being covered, these retailers are At Risk without continuing investment. All the recent failures of multiple retailers, bar one, had previously been classified as Very Worrying.
Disclaimer: The content of these reports has been derived from statistical, trade and published sources together with FSP estimates and interpretation. Whilst FSP has used its best endeavours to ensure the accuracy of the information contained in these reports, it cannot accept liability for any data therein nor any interpretation made therefrom.
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+44 01494 474740
or alternatively
Click here to download the latest Retailer Risk Analysis Financial Health Warning press release from FSP
This update provides a terrific snapshot and insight into the retail sector and just how active it really is! It has to position you up there with Verdict
Graham Freeman