Free digital copy
Get Speciality Food magazine delivered to your inbox FREE
Get your free copy03 January 2017, 07:11 AM
- Political uncertainty fuelled by Brexit and Trump means retail growth in Britain will stagnate in 2017, predicts the KPMG/Ipsos Retail Think Tank
The think tank predicts that in the current political climate and with UK consumer price inflation set to rise to 2.5 - 3 per cent next year, any growth in non-discretionary retail – including food and grocery – will be offset by a decline in discretionary spend, resulting in an overall retail growth figure of 0.5 per cent in the year.
It also predicts that cost prices will grow between 5 and 8 per cent in 2017 and that more retailers will leverage technology and consider multichannel or restructure to increase commercial headwinds.
Paul Martin, Retail Think Tank co-charmain and UK head of retail at KPMG said, “From a macroeconomic perspective, 2016 was a positive year with the UK delivering what is set to be an impressive 2.1 per cent growth in GDP. However, the year is not likely to be remembered for this fact but rather the UK’s decision to leave the EU; the election of the new President of the United States, and the repercussions these events may entail for the years to come.
“You could argue that the ‘Great British’ consumer has broadly ignored the results of the Brexit referendum, with consumer spending continuing to grow over the final months of the year.”
