Retailers across the UK continue to struggle! Mike Ashley’s Frasers Group is too facing the heat now that the Government has decided to not open non-essential retail stores before Easter.
The Group has warned that the roadmap dates announced by the UK Government earlier this week could cost them over £100 million.
The Government said on Monday that all non-essential retail stores will remain closed till 12 April 2021. That’s going to hit company’s finances!
The Group has, reportedly, said that closure of stores for such a long duration is likely to impair its freehold and other properties in addition to plant and equipment.
The company, which owns House of Frasers and Sports Direct amongst others, said to media that considering the length of the present lockdown and probable systemic changes in consumer behaviour, the non-cash impairment for the retailer could cross £100 million.
It is tough not only for Frasers Group, but for the entire retail sector. Debenhams is, reportedly, on the verge of closing down all its stores and John Lewis also said this week that 8 of its stores may shut down any time.
Also Read: John Lewis may shut down 8 more stores
In fact, economists are forecasting the yearly retail sales to drop by as much as 62 per cent next month.
Looking at the current scenario, it wouldn’t be a surprise if the prediction comes true.