Swedish retailers: We will cut down on staff now

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Swedish Retail will start to cut down on employees.

That’s a conclusion after the election from Svensk Handel’s survey Handelsbarometern.

A majority of the retail traders in Svensk Handel’s  Survey, 51 percent, believe in an increase in sales over the next three months. However, it is more often than before, believed that the industry will need to reduce the number of employees.

The Future Indicator, which takes all traders view of future sales and hiring plans, increased slightly from the previous month’s low of 6 to a low of 9 in October.

”It is promising that a majority of traders believe in increased sales, now that the year’s most important quarter is here. Traders believe that the number of employees will decrease due to an effect of the government’s plans to raise payroll for young”, says Jonas Arnberg, chief economist at Svensk Handel.

4 out of 10 traders perceive that their profit margin deteriorated over the past year. Traders indicate that personnel costs are the major factor for companies’ profitability.

”Retail’s declining profitability contributes to many dealers plan to cut down on the biggest cost, the staff. It is natural but sad as it has an impact on service, customer experience and how to drive the store’s competitiveness”, says Jonas Arnberg.