Of the many concepts and catchphrases that have sprung into common parlance as the world's financial systems have unravelled, one in particular stands out. This is the notion that, as our US counterparts say, what happens on "Wall Street" is separate from what happens on "Main Street". The idea is that the goings on in the City are somehow removed from what is now dubbed the "real" economy. As Warren Buffett pointed out, this is as dumb as expecting a bath to have hot water one end and cold water at the other.
The economy is complex, but it is a single entity. And while the shenanigans in the City might appear to be out of this world—step forward credit default swaps—as recent weeks have shown, they impact on everyone. Thus, in Gordon Brown's words, the shock of the banking crisis has tipped the economy into a "likely" recession. In some quarters, this news has been met with barely suppressed relief. At least we know where we stand and can act accordingly. Except this will be unlike previous recessions. Thanks to its unusual causes and the sheer speed of the modern economy, the situation has got more serious much faster than in the past.
So, how is this sudden downturn manifesting itself? This month we look at how UK retailers are coping. While it won't yet be reflected in trading figures, anecdotal evidence suggests that the coming Christmas trading period will be the worst for 30 years. How are retailers reacting? We speak to several, from a number of sectors. The one underlying message seems to be that although it is tough out there—both on the High Street and online—there are still opportunities for those able to offer the right mix of products, good value and excellent service.
Such optimism is also evident in this month's profile. Bettys and Taylors of Harrogate has been a Yorkshire institution for nearly a century, but over the last decade it has been transformed by CEO, Jonathan Wild, into a hotbed of sustainable best practice. And Wild has no intention of stopping planting trees or paying a fair price for his coffee and tea despite the slowdown. He's right. Those brave enough to stick to principles and invest in their people and their businesses now will reap double the rewards when things pick up.
Richard Cree