Retailers are not expecting any economic recovery for the next two years, according to a survey published today.
More than half of the 100 retailers questioned around the world for a survey by consultants AlixPartners said that they were paying suppliers late.
Three quarters said they were not communicating with their suppliers’ credit insurers frequently. Almost half said that their suppliers’ credit limits had been cut.
Most of the retailers surveyed said they were making significant structural changes to their businesses.
AlixPartners managing director Pippa Wicks said: “On a positive note, the best retailers and consumer goods executives are putting a magnifying glass to cash management. However, only half of those we interviewed are looking at their cash on a weekly basis. In today’s environment, relatively healthy companies can suddenly find themselves in a liquidity crunch if they don’t keep a close eye on the cash.”