The retail sector will “flatline at best” next year, reported by predictions from the KPMG/Ipsos Retail Think Tank (RTT) as?disposable incomes become a lot more squeezed with a start inflation and wage growth flatlines.
The group say lacklustre spending in addition to a mixture of “continued headwinds such as geopolitical and macroeconomic obstacles; a bigger volume of regulatory compliance issues and ongoing structural change from the industry” could leave retailers fighting to live.
However, it’s non-food item spending that will be the real key region of weakness for the sector as food prices push ever higher.
The RTT said: “This ‘perfect storm’ of factors may possibly observe the industry reach a pivotal point in 2018, to learn amounts of defensive consolidation and inventive collaboration – along with the inevitable fallout of casualties – the likely outcome during the ongoing fight to survive.”
The think tank members also said they expect to see close correlation relating to the results Brexit negotiations and the all around health of the industry, which has a ‘soft’ Brexit contributing to meagre growth, and also a ‘hard’ Brexit potentially seeing this market contract.