1,600 UK Retailers to go out of business this year?

Doom and Gloom from the UK!
Interesting article about expectations of 1,600 UK retailers to go out of business this year.  But what was most interesting to me in the article was the following:

'Despite the gloom on UK high streets, online retail has continued to grow. Online entertainment retailer, Play.com has reported a 24% growth in sales year on year for the Christmas period.   Simon Perree, CEO at Play.com commented:  “Despite concerns this year about the credit crunch and holding back on gift spending, Play.com has had a hugely successful Christmas with strong sales across all product categories.”  At its peak trading time (Monday December 8th 08), Play.com processed 1000 orders per minute up from 700 orders per minute at the same stage in 2007.'

Based on our holiday research of the top 40 US Online Retailers and the top 30 UK Online Retailers we expect many retailers to have strong holiday results...and others to not come out so well.  In fact, Play.com had the highest satisfaction score of the UK retailers we measured, tied with Amazon.  By the way, Amazon reported that they had their best holiday season ever.

Coincidence?  I don't think so.

If you satisfy your customers...you will have financial success.  When the competition gets tougher, as it always will in a tough economy, those that meet their customer's needs and exceed their expectations will survive - and thrive. 

Why does the competition get tougher?  I think most people's first reaction in a tough economy is not to think about the competition getting tougher, but that is the key to success.  At the beginning of a tough economy the same number of retailers are competing for a slowing (or shrinking) consumer spending.  That scenario makes for a much more competitive environment.