Constricted Swedish retail traders to reduce staff as uncertainty hit the sector


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Thursday, 18 August 2011
One in five employers in the retail trade sector is planning to cut back on workers. The uncertainty in the sector has grown and this means that consumers are spending less.

Recent reports show that it is now realistic that almost every shop is now selling slowly as such the market is worried about that the situation is hitting consumers hard in the wallet.

According to a recent retail trade survey conducted by Svensk Handel (Swedish Retail Trade Federation), the survey shows grim figures. One in five traders believes that staff reductions may be needed in their own shops in the next three months. It is above all the financial turmoil that affects how people act.

“If people feel that the situation is uncertain, then people hold in tightly on their wallet and it affects retailers directly,” says Yvonne Ingman vice president of the Swedish Retail Trade Federation to Swedish television.


Other aspects of uncertainty that also keep the Swedish consumer hoe their money is uncertainty about more interest rates rise. It is not yet clear whether the rise will occur and predicted or not

Also the minister of finance, Anders Borg, has said the expected income tax credit planned to the cuts has to be pushed forwards.  Analysts believe that these are all issues that affect retail trade. Consumers will hold back on expensive goods and expenses larger investment and chooses instead cheaper alternative, according to Yvonne Ingman.

But Swedish retail trade believe that there might be a little flicker of bright light in the horizon. They have put their eyes on the tax refund coming on soon that would flood about
Skr8 billion into the pockets of the people. This money, the retail traders want to seek how the money could be drawn into their shops.
By Team

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