News • 13.03.2018

Traditional UK retailers hit hard by Brexit

Fraser Hammond reports losses of many retail jobs due to Brexit

Photo: EU and UK flag made of puzzle pieces separated by gap; copyright:...
Source: panthermedia.net / Ruletkka

Fraser Hammond economists say at least 5,300 retail jobs are in danger after a major toy retailer and an electronics chain closed their doors last week. Both companies were unable to continue operating due to stiff online competition and economic uncertainty driven by Brexit negotiations.

Fraser Hammond economists say that the U.K. has already suffered the loss of 65,000 retail jobs since the country voted to withdraw from the European Union in June 2016. Major U.K. retailers have been badly affected by costly imports and weaker consumer spending since the Brexit referendum.

After the vote, the pound devalued, making imports more expensive for retailers and resulting in higher prices for domestic consumers. Inflation currently stands at three percent which is far higher than average wage growth.

U.K. consumers are feeling the pressure. Fraser Hammond economists say that official data has shown consumer spending declined in the first month of 2018 in what was the eighth decrease in nine months and that a protracted slowdown is expected in the retail sector in the coming months.

U.K. retailers are also up against stiff competition from leading online stores with toys and electronics becoming increasingly popular online purchases. The portion of U.K. sales made by online retailers has doubled since 2013 and Fraser Hammond expects more traditional retailers to encounter difficulty as they struggle to compete with online rivals.

Fraser Hammond analysts believe that, while the traditional bricks-and-mortar store will still play an important role, there will be fewer of them in the future.

Source: Fraser Hammond

related articles:

popular articles:

Thumbnail-Photo: Customer-centered, digital and adaptive
23.03.2020   #brick and mortar retail #digitization

Customer-centered, digital and adaptive

Bonprix’s Fashion Connect Store in Hamburg

In-store shopping via app – the fashion connect store in downtown Hamburg makes it happen. Daniel Füchtenschnieder, chief executive officer of Bonprix retail, is one of the creative minds behind the new retail concept. An interview about ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Thumbnail-Photo: COVID-19: majority of Americans changing how they shop...
01.04.2020   #online trading #brick and mortar retail

COVID-19: majority of Americans changing how they shop

Most consumers are stocking up in-store, despite health concerns and empty aisles, according to the new Shopkick survey

As uncertainty and anxiety rise across the country due to COVID-19, Americans are doing whatever it takes to stay safe and healthy, including changing the way they shop, according to a new survey by leading shopping rewards app Shopkick. In fact, 76 ...

Thumbnail-Photo: Online fashion retail sales revenue plummets by over 30 percent...
03.04.2020   #online trading #e-commerce

Online fashion retail sales revenue plummets by over 30 percent

New data from Nosto about online shopping in Europe and the US during the COVID-19 pandemic

Online fashion, apparel and accessories retailers in the US and key European countries have seen revenues fall by over 30% year-on-year in March due to the coronavirus epidemic according to a new report. However, traffic did not drop by as much, ...

Thumbnail-Photo: Local food: consumers demand it, grocers need it...
27.02.2020   #supply chain management #food retail

Local food: consumers demand it, grocers need it

Forager and ReposiTrak partner to solve it

As shown in a recent survey from Forager, local food is key to grocers' success – and a weak point for many, with 73 percent of respondents either "somewhat" or "not" satisfied with the quality and availability of local ...

Thumbnail-Photo: WhatsApp Business: A direct line to customers...
29.05.2020   #customer satisfaction #customer relationship management

WhatsApp Business: A direct line to customers

About the installation, functions and advantages of the app

WhatsApp is a popular communication channel used by millions of people worldwide. Now small and medium-sized retailers or restaurants can use WhatsApp Business to quickly and easily engage and interact with their customers and build customer ...

Thumbnail-Photo: Coronavirus: digital commerce spend to fall by 14 percent in 2020...
28.04.2020   #online trading #e-commerce

Coronavirus: digital commerce spend to fall by 14 percent in 2020

Spend set to recover in 2021 as offline spend moves online

A new study from Juniper Research found that global spending on digital commerce will fall by 14 percent in 2020 as lockdowns and reductions in consumer spend are felt. Spending will fall from $11.2 trillion in 2019 to $9.7 trillion.The new ...

Thumbnail-Photo: The eye is shopping too!
20.02.2020   #brick and mortar retail #decorative lighting

The eye is shopping too!

Visual merchandising and product presentation at EuroShop 2020

For a successful purchase, it sometimes takes more than just a full wallet. Customers want to be addressed in the store - not only by staff, but also visually. We also took a look around EuroShop in terms of visual merchandising and product ...

Thumbnail-Photo: Launch: SBA’s paycheck protection program for small businesses...
09.04.2020   #personnel management #coronavirus

Launch: SBA’s paycheck protection program for small businesses

Economic relief provision to protect workers and businesses affected by the coronavirus pandemic

The U.S. Small Business Administration Administrator Jovita Carranza launched the Paycheck Protection Program, a 349 billion dollars emergency loan program created last week with the President’s signing of the Coronavirus Aid, Relief, and ...

Thumbnail-Photo: Cashier as british Vogue cover star
02.06.2020   #cashpoints #brick and mortar retail

Cashier as british Vogue cover star

Keyworkers chosen for front cover providing a special moment of thanks during pandemic

British Vogue is breaking with their usual cover stars - a space normally reserved for ‘A’ list celebrities and supermodels, and instead have devoted their iconic cover for the July 2020 issue to honouring key workers who have been ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen