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UK high streets struggling in run up to Christmas

10th November 2017
UK high streets struggling in run up to Christmas

Non-food sales rose by only 0.2% in October, causing concern for high street retailers in the run up to Christmas.

In the run up to Christmas, a slump in customer spending is the last thing a retailer wants to see. Since its records began in 2011, the British Retail Consortium has reported a “meagre month” of spending by consumers in October, with clothing stores in particular feeling the hardest pinch. Helen Dickinson, BRC chief executive, claims that inflation (the highest in over five years) is putting people off splashing their cash this year.

This is the latest in a tough year for high street retailers, the Brexit vote pushing the value of the pound down and prices up. Next, Debenhams, New Look and ASDA have all announced falls and in some case damaging losses to their sales, whilst Lloyd’s Bank released a report that found average households were struggling more with living costs than they were a year ago. The big fear, of course, is that this dreary outcome will continue through the Christmas period – retailers’ key period for sales.

 

A Report by the CBI announced that orders placed with suppliers was at its lowest since 2009, with 50% of retailers polled reporting a decline in sales in October. The issue is not only a lack of confidence by consumers in the economic climate, but also a shift from browsing shop floors to browsing phones. M&S has closed multiple stores in order to focus its efforts and investment into its online market.

Sadly, the withdrawal of big brands from our high streets has dramatic repercussions for smaller stores, as customers stop visiting their local high street altogether. High rent demands from some landlords make it impossible for smaller retailers to survive these sale slumps. Perhaps Black Friday at the end of the month with revitalise consumers as they attempt to secure discounts in the run up to Christmas.

Now, more than ever, making sure you have effective retail insurance in place is essential. Contact us now at 01202 754900 to sort out comprehensive cover for your business.


About Alan & Thomas

Alan & Thomas Business Insurance can provide a range of insurances to businesses across sectors including hospitalitymotor tradepropertyagriculturalretail and tradesmen. For advice on your business insurance and a free no obligation quote, contact our team today on 01202 754900.

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