Arcadia warns of chill in High Street
TOP SHOP-to-Burton retail chain Arcadia bowed out of the stock market with a chilling warning of tougher times on the High Street. The company, in its formal acceptance of the £850m bid from Bhs entrepreneur Philip Green, warned that retail spending is poised to fall sharply.
It predicted: 'The UK economy faces a period of uncertainty which is likely to affect consumer spending adversely.' It admitted that it had benefited from a 'relatively benign competitive environment' on the High Street, but said this was unlikely to continue.
Green's new acquisition will have to compete against a newly revitalised Marks & Spencer.
Arcadia's board also said it has higher gearing than many competitors, making its profits more sensitive to a downturn in sales. It expects pre-tax profits for the year to August of £106m, up from £63m last year.
