Consumers, industry professionals worried about Brexit impact on grocery retail

The majority of consumers and nearly three quarters of professionals expect the grocery market to be negatively impacted by Britain’s exit from the European Union, two recent survey show.

59 percent of the respondents told a consumer survey conducted by shopping app Ubamarket that they believe Brexit will increase the price of food and produce in supermarkets.

A nearly identical number (57%) said European goods will get considerably more expensive in the survey held during the week before the January 31 departure.

“For retailers, there are obviously concerns from all sides, and as an industry, we need to ensure that customers are fully informed and aware of any potential delays and shortages,” commented Will Broome, chief executive of Ubamarket.

“It is clear that there are supply chain concerns from the industry and retailers are working to try and alleviate any potential issues, however, they need greater assurances from politicians in both the UK and in Europe,” he added.

A survey of the industry professionals by market research agencies MCA & HIM lay bare these concerns, with 73 percent of the people saying that Brexit had already had a negative impact on their business, compared to the 59 percent last year.

“Unsurprisingly, Business professionals across both the eating out and grocery retail markets are feeling the pinch from the UK’s decision to leave the EU,” said Sarah Coleman, Project Manager at MCA Insight & HIM. “However, Brexit continues to remain out of the control of operators, retailers and manufacturers.”

Only 17 percent of the professionals within grocery retail expect market conditions to improve, according to the MCA and HIM Top Of Mind Report 2020. Some 59 percent in the sector describe current trading conditions as challenging, up from 50 percent in 2019.

The survey also found that 42 percent of industry professionals from across the UK food and drink sector expect the market to deteriorate in 2020.

“Despite challenging conditions, both the eating out and grocery retail markets are forecast to grow in 2020, indicating that there are reasons to be positive. However, it will be those that understand their consumers best and meet demand that will capitalise on the opportunities,” Coleman added.

The report identifies the trend towards health, creating an experience in a store or outlet and investing in NPD as the growth opportunities for businesses to target in 2020.