One of Britain’s most respected retailers today added to criticism of the late timing of this week’s Budget saying it “could not be worse” for the embattled sector.
Peter Simon, founder and chairman, of high street and online fashion chain Monsoon Accessorize, said: “The uncertainty caused by the delayed Budget, where timing could not be worse for the retail sector, and the continuing threat of further tax rises, have not made our lives any easier.
“As a result, we are taking a cautious approach to investment and hiring, but believe that in the medium term the business will continue to grow and flourish thanks to our unique designs and rich heritage.”
He was announcing a return to profits for the company he founded with a store in Knightsbridge in 1973, which is headquartered in north Kensington .
Wednesday’s long awaited Commons statement comes two days before the crucial Black Friday discount long weekend seen as the start of the most frenzied period of spending in the run up to Christmas.
Since the date was announced as long ago as early September business has been buffeted by a deluge of speculation about its contents including the on-off talk about an income tax hike. The uncertainly is seen to have been huge damaging to confidence and activity in sectors such as retail and property.
On Friday the Office for National Statistics (ONS) revealed retail sales volumes slumped 1.1% over October with some analysts blaming the timing of the Budget for a delay in spending.
A number of major companies have said their financial performance caused by the long period of uncertainty, including last week housebuilder Crest Nicholson, which issued a profit warning and said jobs were at risk, and pipes giant Genuit, which blamed “purchasing uncertainty relating to the November Budget” for reduced profit expectations.
Last week former Bank of England chief economist Andy Haldane said the "fiscal fandango" of the past months had caused “paralysis” among businesses and consumers.
Adena Brands, the parent company of the Monsoon, Accessorize and East brands revealed that sales grew by 4% to £212 million in the 12 months to end August. The company, which has around 180 stores in eight countries, made a pre-tax profit of £1 million compared with a loss of £7.5 million in the previous financial year.
The company said its core Accessorize retail business “ showed solid growth, with positive like-for-likes and successful new store openings” while Monsoon online business “made significant gains, with more productive digital marketing spend and strong third-party marketplace growth”.
Monsoon childrenswear returned to growth; and the international business “made progress after the recent changes made in Italy and Saudi Arabia.”
The group opened 14 new stores in the UK and refitted another eight.
CEO Nick Stowe said: “This is an encouraging performance, despite the many headwinds we have been facing into, especially cost pressures and increased taxation. It has been possible thanks to the investment programme in our stores and systems that we have pursued in the past five years.”
