Retailers count costs of riots

9th Aug 2011 14:42

The British Retail Consortium (BRC) said it is seeking "urgent action" on the riots that have engulfed parts of London and other English cities.Many properties across the city lay in ruins after being set ablaze in a third night of riots that appear to have been sparked by the police shooting a man dead.The BRC said that retailers are calling for "intelligence-led information" to help them protect their properties."It is imperative retailers know that resources and plans are in place to prevent any repeat of this trouble," BRC director general Stephen Robertson said.He added: "As well as the immediate bills caused by damage and theft, there will be longer-term costs. Inevitably some businesses which have been attacked will never open their doors again."He called on banks to offer good credit arrangements to retailers that have been affected.The chief executive of the baked snacks retailer Greggs, which reported its half-yearly results today, said that some of the company's stores had been destroyed or damaged, but that it had not been targeted in the same way as retailers of more valuable items.Deliveries of newspapers to shops also appear to have been affected. The Association of Convenience Stores said that Sun and Times publisher News International have reported that 39 retailers have not had their usual news delivery as a result of the riots, with a further 54 not receiving deliveries from wholesalers Smiths and Menzies. The damage from the riots is likely to cost insurers tens of millions of pounds, according to the Association of British Insurers."It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are expecting significant losses of a least £10s of millions," the ABI said.---RG