Credit Crunch

When Woolworths was forced into administration, the effects of the current financial climate were finally reaching the average Joe. And now that iconic Waterford-Wedgwood has joined it on the roll call of struggling businesses, the effects are hitting close to home.

Not only does the closure of the pottery firm spell possible job losses for us Staffordshire, but it also means that a huge part of our city’s heritage is under threat by the credit crunch.

Small businesses

And it’s not only big businesses that are feeling these effects, especially in light of the post-Christmas comedown.
Smaller independent businesses are at risk of closure as they try and keep up with the record low January sales prices. People have lost their jobs in the county, and are having to keep their hands firmly in their pockets to ensure that they can survive through it.

‘3T Toys’ is a small independent toy shop based in Trentham. Toys are, of course, a staple for children at Christmas, but with stores like Woolworths having sold off their stock at record low prices, independently-run businesses such as 3T have struggled to keep up with their competitors in the wake of the peak season.

Harry Tomkinson is the co-director of 3T Toys. This year particularly, he has seen a dramatic decrease in customers at the store over the Christmas period.

“There has been a big difference this year; the amount of customers coming in is down, getting on for around 50%.

“The shop is at risk of closure. Obviously we’re trying to hold on to our hats and batten down the hatches. We’ve brought the prices down as low as we can afford to, but it’s a vicious circle really, because if you don’t get the stock in, you don’t get chance to sell properly.”

This Christmas has been 3T’s fourth consecutive peak season, but it might have been their last unless they can make a turn-around in 2009.

Families

It’s not only retailers that have felt pressure this year, especially in the toy department.

Laura Steele is a mother of two from Fenton in Stoke on Trent. She has two young daughters, Isabelle, 2, and Eloise, 7. Christmas has always been a busy time in their household. However, she has noticed that this year particularly, she had to be more sensible about what she brought, so that her children wouldn’t feel the pinch of the financial meltdown.

“This year we shopped around at places that we wouldn’t normally shop in, just to take advantage of their offers. But it seems as though we’re not getting as much for our money. Eloise only had five little presents, where as Isabelle had a lot more.

To Eloise, it’s not a case of ‘Oh, well mine were more expensive than Isabelle’s’, she’ll only see it that Santa has brought her less, and she’s been naughty or something. So we had to take back some of Eloise’s gifts, so we can get her more for that money, by taking advantage of buy-one-get-one-free offers and things”.

Credit cards

It’s always been known that Christmas time has been a financially challenging time for many families, and the pressure on parents to protect their children from the greyness of the credit crunch is proving to be quite difficult, especially with the growing demand for labels, brands and merchandise.

Laura said: “Everything Eloise had for Christmas was ‘High School Musical’ stuff. We’ve had to shop around online for them, because

places like Toys R Us are really expensive. She’s really into the films at the moment and so are all of her friends.

“It’s hard enough as it is at school to keep up with your friends, but it’s unfair that the kids should suffer the misery of not being able to enjoy their favourite things just because we’re struggling to afford them”.

And like many families, the Steele’s are facing 2009 with a hefty credit-card bill. Laura said: “We had to put a lot on our credit cards this year, because we were, like everyone, finding it hard to pay for”.

Future

So, will anyone be safe from the effects of the current financial flop?

Time will tell for most of us, but for others it begins today - with a job loss, an unpaid bill or the desperate attempts to hold on to the businesses and companies that we’ve built ourselves…

Kirsty Bosley