Retailer Risk Analysis 

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. 

 

Companies have been identified as Very Worrying by applying the DIUS Wealth Creation Efficiency Ratio to the financial accounts of over 600 multiple retailers. All the recent failures of multiple retailers, bar one, had previously been classified as Very Worrying. 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.

Retailer Risk Analysis was launched by retail business consultants FSP in 2009, and provides unique insight into the financial health of retailers.  Reports are available in two basic formats, both of which provide vital guidance to the financial stability of a company. 

 

 

The Town Risk Report analyses towns and shopping centres by listing ‘At Risk’ retailers and benchmarking their presence 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 etc).  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.

 

The FSP Retailer Risk Analysis service is a vital tool 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 DIUS health of a retailer, plus key supporting financial figures and analysis, details of which are available upon request.

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.

 

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SnapShop is an online retailer database launched by FSP in 2005. It provides subscribers with a wealth of information on over 2,300 retailers across the UK and works in combination with FSP’s Retailer Risk Reports. For more information about SnapShop, visit www.snap-shop.co.uk