The UK retailers industry is poised for a challenging start in 2024, grappling with weak consumer demand and a surge in costs, including a higher minimum wage.
Retail Think Tank forecasts suggest a subdued first quarter, with consumer confidence affected by rising mortgage and rental costs. Experts anticipate potential consolidation pressures, with buyout deals and mergers on the horizon.
1. UK retailers face a tough start in 2024 amid weak consumer demand and increased costs.
2. The Retail Think Tank forecasts a pause in consumer spending during the initial months, influenced by rising mortgage and rental expenses.
3. Paul Martin from KPMG warns of worsening conditions, especially for online fashion retailers and those without strong financial backing.
4. April’s minimum wage rise and a 6.7% business rate increase are expected to squeeze retailers further.
5. The run-up to Christmas saw subdued retail sales, particularly in clothing, impacted by higher household bills.
6. The final quarter of 2023 witnessed lacklustre performance, with consumers tightening their belts and increased discounting.
7. Concerns about the wider economy and high borrowing costs are likely to keep consumers cautious in early 2024.
8. Health and beauty sectors may see continued growth, while luxury retail and big-ticket categories face a downturn.
9. The Midlands, Scotland, and northeast of England are anticipated to be particularly affected by job losses in the industrial sector.
