Retailers face a tough future

So Santa was not as busy as the retail sector had hoped but luckily (for some) e-Santa was busier than anyone had really expected.  But even with the help of online, even M&S didn't have the 'Rosey' Christmas they wanted.

So maybe 2008 will see some of the big retail CEO's taking a look at how better recruitment can give them a big hand.

I speak to a number of large retailers who still spend in excess of £1m each year with recruitment agencies; some a lot more than that!  Doing some quick sums, assuming a 4% net profit, to make £1m net the retailer would need to have sales of £25m.  £2m, 2% net profit equates to £100m.  Even a small retailer with a smallish £500k agency spend and 5% net profit would still need sales of £10m.

Thats a lot of apples, nappies, Tom Toms, iPods or whatever it is they sell.

I reckon with the 'tough market' we face, recruitment costs may just get a little more focus this year!