There are few sectors where the effects of the faltering UK
economy have been more starkly visible than the retail sector. It
seems that every day the media presents another story about a high
street name facing financial difficulty.
Read Upside - Autumn 2018
There are a multitude of factors playing into the softening
consumer demand, but the biggest issue of all is that consumers
simply have less money.1
While the UK hasn’t left the EU yet, the effects of the
decision to leave is having a significant impact across the
economy. It is perhaps being felt most severely in the retail
market. The depreciation of sterling has had a significant impact
on retailers’ bottom lines, pushing up the prices of goods
imported from overseas and hitting their purchasing power. Analysis
from the British Retail Consortium (BRC) has indicated that global
food commodity costs have risen by an average of 17% since 2016,
indicating the pressure on retailers’ supply chains.
