Along with the daily announcement of yet more job cuts has been the occasional story of firms who are bucking the trend and actually expanding in the recession. For example:
• “Fast food chain KFC has confirmed plans to defy the gloom by creating 9,000 jobs as consumers try to eat out for less.” (Sky News)
• “Hi-de-Hire! Pontin's to take on 2,000 workers as recession Britain holidays at home” (Guardian)
• “Asda defies recession with 7,000 new UK jobs” (Telegraph)
So, what type of businesses are managing to defy the economic gloom. A recent article in The Guardian pointed out that Britain’s spending habits are changing. Those in the ‘value’ or ‘budget’ sector are often doing well, while those traditionally viewed as having more ‘middle-class’ customers are struggling.
Eating out is on the decline, Marks & Spencer is closing some Simply Food stores and Starbucks is closing branches while most supermarkets and some take-away caterers are doing well.
Geoffrey Wood, professor of economics at Cass Business School, said it was not clear whether the changes in spending habits would be permanent. "People make these shifts in a recession, but if they find that the only thing inferior about the cheaper product is the packaging then they might stay with it."
But Wood cautioned against sweeping conclusions. In many cases, he said, businesses that were suffering had their own problems. "I'm not surprised about Starbucks. It is fine if you like warm milk." M&S, he said, had "taken its eye off the ball" while the discounters such as Lidl and Aldi were benefiting from acres of free press.
Businesses that have recently announced UK expansion plans include (with recruitment websites):
• KFC - 9,000 UK jobs
• Subway – 7,000 UK jobs in 600 new stores in UK and Ireland
• McDonalds – sales up 10% and 10,000 apprentices a year from 2010
• Domino’s Pizza – 9% increase in sales (branch locator)
• Greggs – 5% gain in profits
• Pontins – 2,000 UK jobs as people choose to holiday at home
• BskyB – 1,000 new UK jobs, many to install new satellite dishes
• Asda – 7,000 UK more staff in 14 new stores (store locator)
• Tesco – up to 10,000 UK jobs
• Morrisons – 5,000 new UK jobs including those on butchery, fishmongery and bakery counters
• Sainsbury’s – up to 4,000 UK jobs this year
• Aldi – sales up by a quarter over the last year
• Lidl – 2,000 new UK jobs in 50 new stores
• Poundland – 1,000 UK jobs for 30 new stores
• H&M – 6,000 to 7,000 UK jobs in 100 new stores
Along with the daily announcement of yet more job cuts has been the occasional story of firms who are bucking the trend and actually expanding in the recession. For example:
• “Fast food chain KFC has confirmed plans to defy the gloom by creating 9,000 jobs as consumers try to eat out for less.” (Sky News)
• “Hi-de-Hire! Pontin's to take on 2,000 workers as recession Britain holidays at home” (Guardian)
• “Asda defies recession with 7,000 new UK jobs” (Telegraph)
So, what type of businesses are managing to defy the economic gloom. A recent article in The Guardian pointed out that Britain’s spending habits are changing. Those in the ‘value’ or ‘budget’ sector are often doing well, while those traditionally viewed as having more ‘middle-class’ customers are struggling.
Eating out is on the decline, Marks & Spencer is closing some Simply Food stores and Starbucks is closing branches while most supermarkets and some take-away caterers are doing well.
Geoffrey Wood, professor of economics at Cass Business School, said it was not clear whether the changes in spending habits would be permanent. "People make these shifts in a recession, but if they find that the only thing inferior about the cheaper product is the packaging then they might stay with it."
But Wood cautioned against sweeping conclusions. In many cases, he said, businesses that were suffering had their own problems. "I'm not surprised about Starbucks. It is fine if you like warm milk." M&S, he said, had "taken its eye off the ball" while the discounters such as Lidl and Aldi were benefiting from acres of free press.
Businesses that have recently announced UK expansion plans include (with recruitment websites):
• KFC - 9,000 UK jobs
• Subway – 7,000 UK jobs in 600 new stores in UK and Ireland
• McDonalds – sales up 10% and 10,000 apprentices a year from 2010
• Domino’s Pizza – 9% increase in sales (branch locator)
• Greggs – 5% gain in profits
• Pontins – 2,000 UK jobs as people choose to holiday at home
• BskyB – 1,000 new UK jobs, many to install new satellite dishes
• Asda – 7,000 UK more staff in 14 new stores (store locator)
• Tesco – up to 10,000 UK jobs
• Morrisons – 5,000 new UK jobs including those on butchery, fishmongery and bakery counters
• Sainsbury’s – up to 4,000 UK jobs this year
• Aldi – sales up by a quarter over the last year
• Lidl – 2,000 new UK jobs in 50 new stores
• Poundland – 1,000 UK jobs for 30 new stores
• H&M – 6,000 to 7,000 UK jobs in 100 new stores