Has the Brexit vote put retailers’ long term prospects at risk?
46% of the UK's retail businesses anticipate a drop in consumer spending over the next 12 months
Three months on from Britain’s vote to leave the EU, a new study claims that uncertainties surrounding the Brexit decision have caused many UK retailers to delay investments in their business – therefore putting their long-term prospects at risk.
The study, published by Worldpay, found that almost half of UK retailers believe trading conditions will become more challenging over the next 12 months with 46% of the opinion that there will be a drop in consumer spending over the next yeaar.
44% of the retail businesses surveyed said the Brexit decision had led them to reconsider planned investments in new technologies and channels to market, something which Worldpay believes could limit retailers’ ability to grow if left unchecked.
However, retail businesses operating a multi-channel approach – as opposed to those retailers with only a bricks and mortar store – were found to be “far more confident” about post-Brexit trading conditions.
Dave Hobday, UK managing director of Worldpay, commented on the study:
“Whilst it’s too early to tell what the long term effects of Brexit will be, the fundamental principle of retail will remain the same – focus on the customer. The businesses that will thrive in the post-vote environment will not be those that batten down the hatches, but those that invest and innovate to deliver the type of technology driven experience and service their customers are demanding.
“Multi-channel strategies which allow retailers to broaden their customer base and appeal to non-UK shoppers will enable businesses to capitalise fully on the current competitiveness of UK products internationally.”