Soaring costs endured by Britain’s retailers could prove to be a “permanent blow” for the sector, new findings have warned.
While retailers fared relatively well in the first quarter, a mounting “tsunami” of costs and falling consumer spending could have a negative impact on many businesses in the sector, the latest assessment by KPMG/Ipsos Retail Think Tank members suggests.
The return of full business rates, utility bill hikes and a national insurance increase will put pressure on margins, meaning some retailers may simply end up being unable to shoulder further financial burdens.
Read the full article on the This is Money website
NAM Implications:
- The return of full business rates, utility bill hikes and a national insurance increase…
- …will obviously put pressure on retail margins.
- Which, coupled with depressed demand driven by high inflation…
- …will damage many retailers.
- But important to keep in mind that not all retailers will be affected equally…
- Amazon is getting to a point where they can dictate prices
- (and increase prices where necessary)
- Aldi & Lidl can afford to fund UK price cuts at the expense of their global operations
- All pointing to a very challenging 2022 for suppliers and retailers…
