A new report by KPMG/Ipsos Retail Think Tank announces that the UK retail sector is predicted to grow by at least 1% in 2020, having endured what Retail Think Tank (RTT) described as ‘three and a half years of pain.’
The report cites varying factors that contribute to this optimistic outlook. A lift in consumer confidence from post-election certainty, for example, will provide a much-needed boost to the sector.
RTT said it was ‘cautiously optimistic’ that this post-election certainty would have a positive impact on high-street sales, and stated that non-food retailers in particular would likely benefit the most. A spokesperson at RTT said that those non-food retailers who had adapted to the tougher conditions would at last see ‘a turning point.’
James Sawley, HSBC UK head of retail and leisure, said: “The news of a governing party with a comfortable majority and clear vision for Brexit gives me hope that we will see a rebound in consumer confidence in 2020.
“The UK consumer may breathe a sigh of relief, the end of knife-edge votes and uncertainty should translate to a loosening of the purse strings.”
KPMG’s head of retail, Paul Martin, offered valuable insight into the ever-changing face of retail in the UK, saying: “It is becoming increasingly clear that whilst the three key historic drivers of purchase decisions – value, convenience and experience – remain important, new factors are rapidly emerging.
“I would argue that a second lens of factors should now be considered, these being choice, purpose and privacy.”