Kincella I am in retail and we are down between 15/20%. I am in the fresh food markets 6 days a week and I speak to many colleagues who have experienced similar reductions in spending regardless of their position in the market. We have been discounting heavily to try and stimulate sales. Its a double whammy - normally most businesses in our sector work on 40% GP. We are lucky to get 35% and our turnover has decreased.eg Turnover $60000per week at 40% gp = gp $24000 - turnover $50000 @ 35% $17500 gp. The bottom line is getting smashed. The simple explanation is that people have stopped spending! Why? Sentiment,probably. Too much debt, more than likely. I employ a bookeeper once a fortnight and she has many clients from a wide variety of businesses. The common theme from her is the high level of debt people are carrying. Steven Keen was on the money - 'retail spending will experience a decrease of around 20% because of the level of household debt'. It makes you wonder how house prices can remain at current levels
