1 in 10 businesses in the retail and wholesale sector face are facing collapse as they state they will not last another month of lockdown. As the UK faces one of the sharpest recessions on record an increasingly large amount of retailers are beginning to buckle under the pressure of lockdown. Research released originally by strategic insight agency Opinium has anticipated business recovery time will take up to 28 weeks, suggesting the longer lockdown persists, the longer it will take to rebuild. The inevitable crash that is looming over the British economy, has many industry professionals predicting how the financial sector will repair itself. A V-shaped recovery has been speculated by economists, whereby the markets and employment decline, however, this drop is followed by a rapid increase. A U shaped recovery has also been rumoured by some, similar to a V shape recovery route, we experience a stark dip in the economy, however, the country does not bounce back as quick This array of letter shape predictions are ultimately speculation, PM Boris Johnson has still not given a definite answer as to when retailers can open their stores again.
Retailers reveal the risk of entering insolvency as a result of coronavirus-related disruption
Pablo Shah, Senior Economist at Cebr comments on the findings, “The latest results show that long-term damage to the economy is stacking up. Businesses now anticipate needing 28 weeks after restrictions are lifted to return to pre-crisis levels of production 3 weeks longer than in the previous edition of the Tracker, at more than half a million, the estimated number of businesses at high risk of insolvency remains alarmingly high”
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