The imminent demise of household goods seller Wilko highlights the challenges UK retailers currently face amid decades-high inflation and anaemic economic growth, but experts argue it also stems from bad management. Lisa Wilkinson, one of the founders' heirs and one of the group's former managers, has argued that not taking dividends would only have given the company a few months' reprieve.
Inflation, supply chain problems and so-called"business rates" taxes also ate into profit margins.
Despite the difficult sector-wide conditions, analysts and the GMB union have taken aim at Wilko's management. "This isn't a tragedy without cause. Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners," the union said in a statement Monday.
Lisa Wilkinson, one of the founders' heirs and one of the group's former managers, has argued that not taking dividends would only have given the company a few months' reprieve.Streeter noted that rivals have successfully focused on"more popular retail park sites and had diversified product ranges more into food".
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