The record low consumer confidence, as revealed in the latest industry data, will create significant challenges for independent retailers in the coming months, leading retailers' body has warned.
The latest BRC Consumer Sentiment Monitor for February 2025 shows a concerning decline in consumer outlook, with pessimism in the economy continuing to increase and rising to a record high.
UK confidence has dropped nearly 40 points since July 2024 while consumer outlook towards the UK economy over the next three months has reached its lowest level (-4pp), continuing its decline since October.
Independent retailers body Bira warns that these figures represent a concerning trend for high street retailers.
Commenting on the BRC figures, Jeff Moody, Commercial Director for Bira, said, "The latest BRC Consumer Sentiment Monitor paints a worrying picture for independent retailers.
"These figures align with what our members are telling us - over 57 per cent of independent retailers surveyed by Bira reported feeling somewhat or highly unconfident about business prospects for the remainder of Q1 2025, with 56% expressing the same lack of confidence for the rest of the year.
"With consumers actively looking to reduce spending and seeking out cheaper alternatives, independent retailers face significant headwinds.
"This situation is exacerbated by the upcoming cost increases set to take effect from April, including higher National Insurance contributions, National Minimum Wage rises, and Business Rates increases.
"We're particularly concerned about the shift in consumer spending towards essentials only, with many planning to purchase fewer items from both physical and online stores.
"The slight uptick in those expecting to use foodbanks is a troubling indicator of the financial pressure many households are facing.
"Independent retailers will need to focus on their unique value proposition during these challenging times while we continue to advocate for policy measures that support both consumers and the independent retail sector."
Bira has been at the forefront of championing the cause of independent traders and shopkeepers across Britain.
Its campaigns cover a wide spectrum of issues such as rising tide of retail crime, advocating for changes in legislation that promote fairness and flexibility, fairer business rates, regulatory burden and £1 billion damages claim against Amazon by UK retailers.
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