Contractor rates in the retail sector have been particularly hard hit by the recession, according to Simon Gough, director of retail and consumer at Interim Partners.

Gough’s comments follow Ipsos MORI research which shows daily rates for interim managers, who work just below board level on a contract basis, fell 26% in the retail sector from £952 before the credit crunch started (Q2 2007) to £706 now (Q2 2010).

Gough says: “The market for senior managers in retail has been hit harder than other sectors by the credit crunch. Demand for managers fell sharply and a glut of top quality retail talent is oversupplying the handful of roles available. The two factors have put substantial downward pressure on fees.

“Many retailers were forced into insolvency during the recession, including some major high street names. With so many managers chasing a handful of roles at the moment, there is an inevitable impact on rates that managers can charge.

“On the demand side, retailers have reacted to weak consumer spending by putting almost all major management projects on hold to reduce costs. While other sectors have been kick-starting stalled management projects as the economy has recovered, on the whole it is only projects that deliver savings or that could not be put off any longer have been implemented in the retail sector.”