The UK retail industry faced a challenging holiday season, with a significant decline in shopper numbers reported by Ipsos Retail Performance’s Retail Traffic Index (RTI). Factors such as the Christmas holiday falling on a Friday and ongoing lockdown restrictions contributed to this downturn, particularly in non-food stores.
Despite these setbacks, the KPMG/IPSOS Retail Think Tank (RTT) remains optimistic about the sector’s prospects for the second half of 2021. With forecasts predicting sales growth of 0-3% for the year, there is hope for a resurgence in shopping activity as the vaccine rollout progresses and consumer confidence increases.
The RTT emphasizes the need for retailers to adapt to changing consumer behavior and invest in technology to enhance the shopping experience. While challenges like business rates persist, exploring innovative solutions to support the industry’s recovery is crucial for long-term success.
Looking ahead, the retail sector is expected to benefit from pent-up savings, a successful vaccine rollout, and a renewed focus on efficiency and margin improvement. As retailers navigate the changing landscape post-Brexit, embracing change and innovation will be key to staying competitive in a rapidly evolving industry.
For more information on the Retail Think Tank’s insights and forecasts for the industry, visit Retail Think Tank. To learn about the latest trends and technologies shaping the future of retail, explore Forbes Retail.
