Arctic Roll

Production of Arctic Roll, the retro ice cream dessert, was halted in 1997, but in 2008, Birds Eye chose to revive the brand because the recession is fuelling a demand for comfort food.

Business Correspondent Ian Reeve went to the north Yorkshire factory that is making nine million of them a year.

Watch the video.

Apple and Amazon will power on through slump, say analysts

The Guardian reports on the continuing sucess of Apple and Amazon despite the credit crunch and recession.

The recession-busting technology companies Apple and Amazon have room to continue expanding during the downturn, according to analysts.

While most businesses are still struggling to cope with the effects of recession, the two American corporations saw their stock prices hit all-time highs last week after reporting rising profits. Apple’s continued success pushed its shares to a historic high of $208, while Amazon – boosted by a huge jump in profits – returned to levels above $115, last seen during the height of the dotcom boom.

Surveyors report market momentum

BBC reports on improvements in interest in the UK housing market.

Interest from home-buyers is starting to gain “real momentum”, although sales remain low, UK surveyors say.

The housing market is a traditional indicator of the strength of the UK economy. Once people start buying houses, this can kick start the economy, as people start to buy new things for their new homes.

Photo source.

More retailers in administration

BBC reports on Mosaic going into administration.

Mosaic, which owns some of the most famous brands on the UK High Street, has gone into administration, with debts of about £400m.

But most of the group, including Oasis, Karen Millen, Warehouse and Coast have been immediately sold to Mosaic’s main creditor – Icelandic bank Kaupthing.

As the recession deepens it would appear that more and more retailers are going into administration.

Online Retailers Prosper

The BBC Click programme looks at how online retailers are going to prosper in the recession whilst high street retailers suffer, fall into administration and close.

The credit crunch might be bad news for high street stores who see fewer people step through their doors but it is proving to be good news for web retailers.

Many hope their green credentials and more secure payment systems will encourage more customers to take their mouse shopping rather than their car.

220% increase in number of businesses going bust!

The BBC reports on the huge increase in the number of businesses going bust!

There has been a huge rise in the number of firms going bust in England and Wales because of the recession.

The Insolvency Service said that in the last three months of 2008 there were 2,428 corporate insolvencies such as administrations and receiverships.

That was a 220% rise on the same period the year before.

This of course has an impact on suppliers of those businesses as well as the immediate impact on the employees.

This kind of negative news, along with job losses reported across the country makes consumers behave in the very way in which reinforces the recession, as spending reduces and firms cut back on production.

Things will start to change once the economy starts to feel that it is at the bottom and has higher expectations about the way in which the economy is moving.

More on the economic environment in which businesses operate.

Photo source.

UK in recession: official

BBC reports that the country is in recession:

The UK is now in recession for the first time since 1991, official government figures have confirmed.

Gross domestic product fell by 1.5% in the last three months of 2008 after a 0.6% drop in the previous quarter.

That means that the widely accepted definition of a recession – two consecutive quarters of falling economic growth – has been met.

…and another one!

BBC reports

The womenswear company Viyella, which was founded in 1784, has become the latest long-established British company to call in the administrators.

The company has annual sales of about £30m and operates 40 stores, 64 concessions and four clearance outlets.

Of course like other retailers mentioned in this blog, only Woolworths has actually closed, the others are “only” in administration, but more often then not this can lead to at a minimum closure of lots of stores.

Even retailers not in administration are feeling the pinch and closing stores. BBC also reports on Marks and Spencers who are closing stores and cutting jobs.

Marks and Spencer plans to close 25 of its small Simply Food stores and another two of its regular stores.

The closures will mean the loss of 780 jobs. The retailer is also planning to cut 450 head office jobs.

The retail sector which weathered the last few recessions has been hit very hard by this one. The difference this time, is that margins are tight so it doesn’t take a large drop in sales for it to have a major impact on the profitability of the retailers.

UK economy ‘already in recession’

Top forecasters have said the UK economy is ‘already in recession’ according to a BBC report.

The UK economy has “deteriorated dramatically” in the last three months, and is already in a recession, top forecasters have suggested.

The Ernst & Young Item Club predicts that economic growth will decline by 1% next year before recovering in 2010, when it will see 1% growth.

As the economy contracts, investment will fall and unemployment will rise.

But one “bright spot” is that inflation is likely to fall, enabling the UK to cut interest rates further, it said.

In an ever changing business environment, it is important that any business organisation is aware of how the economy is doing in order to avoid making costly mistakes.

Recession ‘looming’ for UK firms

BBC reports on a survey which seems to indicate that a recession is “looming” for UK businesses.

The UK is facing a serious risk of recession within months, the findings of a survey of almost 5,000 small, medium and large businesses suggest.

This survey demonstrates the changing business environment in which firms and businesses operate.