50% OF BELGIAN BUSINESSMEN ARE CONCERNED ABOUT BANKRUPTCY

Summer is coming to an end, as well as the traditional summer sales, which do not please Belgian entrepreneurs this year. According to data provided by the Union of the self-employed citizens (UCM), only a quarter of business owners in the kingdom are feeling satisfied. At the same time, total sales fell by more than 20% (compared to 2019).

The study showed that almost 50% of businessmen in Belgium have a feeling of concern of possible ruin and bankruptcy. This year, the pandemic has made its adjustments to the summer sales season, moving them from July to August. The stores that opened a month later than it was expected to did not bring the desired effect, since the restrictive measures were retained - in particular, the requirement to make purchases all alone with a limit of half an hour.

The restrictions were eased up at the end of August, but it was not possible to return the sales to their usual level.

The experts from UCM note that only 16.5% of entrepreneurs reported an increase in sales compared to 2019 in response to the questionnaire. For 9% of the Belgian businesses, profitability remained at the level of the previous year. However, the majority of entrepreneurs have unfortunately not been compensated for the losses incurred by the business due to the COVID-19 pandemic.

About 57.3% of business representatives noted a drop in sales of 20% or more. Every fifth retailer estimated the drop in revenue at 40% and even higher.

This picture shows the mood of Belgian consumers, who try to limit their shopping, despite the discounts of 50-70%.

The polls conducted by the Belgian Union of Freelancers (SNI) show that nearly half of the items in the fashion stores remain unsold. About 75% of entrepreneurs plan to keep their collections for the future sales. Many businessmen (over 66%) stated that they would organize events and promotions with sales in September.

Considering that about 60% of clothing retailers do not have the funds to purchase new collections, many are concerned about possible bankruptcy by the end of 2020.

Some will donate the unsold goods to the charitable organizations, while the others will resell them to the wholesalers of the second hand stores.

The last hope that still lingers in the hearts of Belgian retailers is the coming holiday season. It can still restore the consumers’ desire to buy, otherwise the business can go to the bottom.