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UK:Philip Green goes `short term'' on foreseeing growth
in UK Retail segment |
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2005-3-24
 Owner of Arcadia Group and billionaire Philip Green, expect no significant growth in the retail industry as consumers cut back amid a slump in the economy.
With the results out for February for the U.K. retailers'' even as the pace was slower, “It''s pretty tough right across the whole sector,'''' Green, 53, said in London yesterday. “I don''t think there is any significant growth in the short term.”
The retail sales results were announced compared to the January, and according to the London-based National Statistics Office, as shoppers spent less at stores. The FTSE 350 General Retailers Index has risen less than 1 percent in the past six months, while the broader FTSE 350 Index has gained 8.5 percent.
“There has definitely been a slowing down since last October,'''' said Green, who was in London to discuss his strategy for the Fashion Retail Academy (FRA).
FRA was set up jointly by Green''s closely held Arcadia Group Plc with the London College of Fashion to provide retail-industry training.
“From the more clothing point of view, the weather has been slightly unusual for the opening of spring, but I think it is going to be a tougher year,” Green said.
Consumers have cut down spend after the Bank of England raised interest rates five times in the 10 months through August to a three-year high. Low-price chains such as Cheshunt, based Tesco Plc giving tough competition to Marks & Spencer Group Plc, the U.K.''s largest clothing seller, while rising interest rates desist consumer spend.
Green''s comments echo those of Marks & Spencer Chief Executive Stuart Rose, who said March 16 at the Retail Week conference in London that business ``is not going to get easier.''''
“The retail environment has toughened up since Christmas,” Rose. “When a business is behind, it''s difficult. We''re all fighting for that space.”
Green and his wife, Cristina, are worth an estimated $6.3 billion, according to Forbes Magazine, which ranks them as the world''s 68th-richest people.
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