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Cost of big freeze could prove the final straw for some |
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Written by Helen McArdle, HeraldScotland
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Tuesday, 07 December 2010 08:18 |
 Cost of big freeze could prove the final straw for some, warn business groups
Businesses in Scotland are facing a fresh week of financial misery as snow forces shoppers to desert the high street, and distribution networks grind to a halt.
With less than three weeks until Christmas, small businesses and retailers are counting the cost of the big freeze.
Sales have been hammered in December with whiteout conditions costing the economy an estimated £15 million a day.
An upsurge in high-street sales in Scotland over the weekend coincided with a break in the snow, but with blizzard conditions returning yesterday – especially in the west – retailers are fearing the worst.
Fiona Moriarty, director of the Scottish Retail Consortium, said: “The past week has obviously been very difficult for retailers.
“We had reports that shops had been very busy over the weekend when the weather improved, which was welcomed by retailers.
“But with conditions taking a turn for the worse, there is a lot of nervousness among retailers about what will happen if this weather continues.”
Rory Mackail, chairman of the west-of-Scotland branch of the Federation of Small Businesses, said many smaller firms could be devastated if the Arctic conditions did not let up.
He said: “Deliveries are not getting through.
“Our local heating engineer [in Dalton, near Lockerbie] has lots of work, but he can’t get out to do any of it. I was speaking to a taxi driver in Perth just the other day who was saying their business is almost done because people can’t get out and about.
“And one of my colleagues on the FSB who runs a florist is saying there’s huge demand at this time of year for gifts of flowers – but he has to dig himself out of his driveway first, and then probably dig through snow just to get into his shop.
“Even when he does, there’s no way to get deliveries out. If your business is in a remote or rural location, it’s just horrendous. And it’s all completely out of your hands.”
Business chiefs at Glasgow Chamber of Commerce have warned that a prolonged cold spell could be the final straw for many businesses already struggling in the downturn, as they find it impossible to cope with staff shortages, delivery problems and a fall in trade.
Chief Executive Stuart Patrick said: “We need to understand why we still have untreated local roads preventing people from getting to work, and trains being cancelled.
“Widespread closure of schools has also resulted in many parents having to stay off work to carry out unplanned childcare duties. For some businesses the impact on their turnover may be the last straw.”
Many large employers decided to send staff home yesterday as the snow got deeper and deeper.
Engineering services firm Balfour Beatty sent workers home at lunchtime from its base at Hillington, near Glasgow.
BT also called an early halt to the working day at many telephone exchanges. It said phone faults could not be tackled in the Glasgow area because engineers were stuck in traffic or snowed in. Some engineers were sent home early from telephone exchanges for safety reasons.
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Last Updated on Tuesday, 07 December 2010 09:06 |
