The British Independent Retailers Association (Bira) has warned that 2024 is likely to be another challenging period for shopkeepers due to the difficult economic conditions.
Bira, which works with over 6,000 independent businesses across the UK, said they were expecting more challenges coming up in the coming months and urged businesses to prioritise resilience and adaptability.
Andrew Goodacre, CEO of Bira said: “While optimism usually accompanies a new year, we anticipate 2024 to be another challenging period given the prevailing pessimism in economic growth.
“We expect inflation to stabilise and interest rates to remain where they are. Economic stability is crucial for us to focus on economic recovery. Bira recognises the need for a stable economic environment to empower its members and foster a climate conducive to business growth.”
Goodacre added that consumer confidence also remained key. He said: “Consumers will still lack confidence and will be looking for value and strong brands. We are committed to supporting our members in meeting evolving consumer preferences, ensuring they remain competitive in the market.”
Contrary to the digital trend, Goodacre noted a surprising shift, saying: “The penetration of internet shopping declined in 2023, and we do not expect it to increase in 2024 – most people will want to buy in shops. This insight underscores the enduring importance of bricks & mortar stores in the retail landscape.”
Bira is also urging shops to not overlook other important opportunities. “The older generation represents a real business opportunity – higher levels of wealth and disposable income. We ask that retailers recognise the potential of this demographic, and not to ignore the often-retired generation’s significant purchasing power,” Goodacre said.
Looking locally, he highlighted that there were many opportunities in community collaboration. Goodacre said: “Other opportunities will still be local shopping and business communities working together to create a vibrant, diverse high street that people want to visit and where they want to spend time and money.”
He added that the political landscape would also have a huge effect on 2024: “We will obviously have a general election, and while many may welcome a change of government, it will lead to a period of instability.”
NAM Implications:
- Retailers that don’t face up to reality…
- …will find that others will do so on their behalf.
- That said, realistic optimism will be the theme for 2024…
- …remembering that most rivals are operating under similar market conditions.
- So any growth needs to come at the expense of rivals.
- Key is to:
- Define/redefine consumer needs
- Reassess relative competitive appeal
- And deliver more than it says on the tin, every time
- All else is detail…
