Mo Money, No Problems

Dean Nicholas
By Dean Nicholas Last edited 112 months ago
Mo Money, No Problems

Louis VuittonBack in April we reported that retail sales were looking healthy early on in '08. Seems the trend has continued, with spending in central London last month up 8.7% compared to June 2007, while the national figure dropped by 0.4%. Continental visitors flush with sterling-thumping Euros, along with heavy discounting and aggressive mid-season sales from department stores, have helped retailers to healthy profit margins, though the research firm KPMG cautioned that the trend doesn't necessarily hold true for Greater London - not, perhaps, the kind of news that will please Boris' doughnut ring of suburban supporters.

Last Updated 21 July 2008

velorution

Can you explain how "heavy discounting and aggressive mid-season sales" can yield "healthy profit margins"?

Dave

'Can you explain how "heavy discounting and aggressive mid-season sales" can yield "healthy profit margins"?'

Well I'm no economist, but I would say that anything that stimulates retail spending would have the potential to support profits. Seems fairly straightforward to me.