A passionate journalist with about a decade of experience, Pooja has developed a strong hold on the UK grocery retail sector. From exploring legislative changes, supply chain shifts, consumer buying habits, trends to retail crime, her work is driven by a deep belief in investigating, finding the truth and telling authentic unbiased stories.
Be it convenience pathbreakers, wholesale trendsetters or Post Office Horizon scandal victims, Pooja has an equal flair for deciphering industries as well as human complexities. At Asian Trader, she aims to bridge the gap between policy, trade, and the shop floor, always keeping a finger on the pulse of what matters most to retailers.
Consumer confidence in the UK economy has taken another hit, with expectations reaching a new low, states the latest industry data, ringing alarm bells ahead of upcoming hikes scheduled in April on multiple fronts.
While households are also gloomier about their own personal finances, retailers are also facing mounting challenges, with rising operational costs and potential hiring freezes on the horizon.
According to BRC-Opinium data released today (20), consumer expectations over the next three months of the state of the economy worsened to -37 in February, down from -34 in January. This is the fifth consecutive month in which expectations have worsened.
Their personal financial situation dropped to -11 in February, down from -4 in January while their personal spending on retail rose to -5 in February, up from -9 in January.
Their personal spending overall remained at +4 in February, the same as in January and their personal saving remained at -3 in February, the same as in January, shows the BRC data.
Helen Dickinson, Chief Executive of the British Retail Consortium, says, "People’s expectations of the economy reached a new low, having fallen almost 40pts since July 2024.
"Even Gen Z (18-27), the most upbeat generation on the economy and their own finances, saw a drop off in optimism. There was also a widening gender divide in confidence this month, with women more pessimistic than men about both the economy and their own finances by 13 and 17pts respectively.
"With many businesses warning of the impact that April’s employer NIC’s increase will have on hiring, and the rising energy price cap pushing up the cost of domestic bills, it is little surprise that many households are worried.
"And while there was a positive increase in expectations of personal retail spending, this may be largely driven by the expectations of higher prices in the future."
Expectations of higher prices are not unfounded, with two-thirds of retailers saying prices will have to rise as a result of the £7bn in additional costs, including higher employer NICs and a new packaging levy, Dickinson says.
"Almost half of retailers also warned of hiring freezes, with entry-level jobs often among the first to go as they seek any cost efficiencies to help them protect customers from the worst of the rising costs.
"As the Government bill on the future of business rates progresses through Parliament, it is essential that no shop ends up paying more in rates as a result of these reforms, otherwise retailers will face a triple whammy of Budget costs, business rates rises, and new packaging and recycling levies, all of which will filter through to consumer prices.”
Almost all convenience stores in Wales engaged in some form of community activity last year, shows a latest report, shedding light on the value that Wales’ 3,000+ convenience stores provide as community hubs, local employers of over 26,000 people, and significant contributors to the Welsh economy.
Association of Convenience Stores (ACS) has officially launched its 2025 Welsh Local Shop Report, celebrating the key contributions that Welsh convenience stores make to their communities.
The report acts as its own standalone branch of the ACS Local Shop Report, focusing on the positive impacts that Welsh convenience stores have on their local communities, often providing key services that have declined or disappeared from those areas.
The 2025 Welsh Local Shop report was launched today (26) at Tŷ Hywel, Cardiff, where members gathered together to discuss and celebrate the significant role that local shops play in Welsh communities, as well as the unique challenges faced by Welsh businesses.
Key figures from this year’s report include:
Welsh shops contributed to £656bn in GVA over the last year
Welsh shops provide over 26,000 secure, local jobs to their communities
38 per cent of these stores are isolated with no other retail or service business close by
93 per cent of independent retailers in Wales engaged in some form of community activity over the past year
Welsh convenience stores were voted the second most important business in supporting their local economy by Welsh shoppers
Over the last year, convenience stores in Wales have invested over £43m in their businesses. 65 per cent fund investments from own reserves while refigeration turned out to be the most common area of investment, states the report.
87 per cent of Welsh independent retailers own one store, while 14 per cent of retailers never take holidays.
33 per cent of Welsh convenience stores offer delivery service while 29 per cent has a Post Office.
Talking about food to go, 38 per cent of Welsh convenience stores has customer operated coffee machine, 27 per cent has food preparation area, 25 per cent has in-store bakery while 21 per cent has hot food counter.
About 77 per cent of stores has EPOSW and 52 per cent has store website, adds the report. 96 per cent of stores has CCTV.
The average basket size is 2.7 items and average spend is £8.29.
ACS chief executive James Lowman said, “The Welsh convenience sector has once again proved its resilience in providing secure, flexible jobs and acting as an important service hub for customers to access the products and services they need daily.
“We hope that the Welsh government will support retailers in Wales such as the rising operational costs of trading, so that they can continue to act as community anchors for their residents.”
British inflation slowed more than expected in February, bringing some relief to consumers ahead of a likely new pick-up in price growth and to finance minister Rachel Reeves before her budget update speech today (26). However, analysts have warned that it inflation will be pushed again soon due to costs arising from the Budget.
Consumer prices rose by 2.8 per cent in annual terms in February after a 3.0 per cent increase in January, the Office for National Statistics said, as clothing and footwear prices fell for the first time in more than three years.
Economists polled by Reuters had pointed to a reading of 2.9 per cent in February while the Bank of England had expected 2.8 per cent in a set of forecasts published in early February.
Economists warned that rising energy prices will push inflation up again soon.
"February's slowdown is a false dawn as notable near-term price rises are already baked in, with next month's jump in energy bills and national insurance likely to push inflation perilously close to 4% sooner rather than later," Suren Thiru, Economics Director at accountancy body ICAEW, said.
He said the BoE would remain wary about price pressures.
"While a May policy loosening remains on the table, rate setters will want to gauge the effect of April’s major jump in business costs and any measures announced in the Spring Statement before proceeding with another rate cut," Thiru said.
Responding to the latest CPI inflation figures, Kris Hamer, Director of Insight of the British Retail Consortium, said, “Headline inflation fell marginally in February, driven by marginal drops in housing and household services and clothing and footwear entering deflation.
"Despite continued cost pressures, namely energy price volatility, food inflation remained unchanged. There was good news as some dairy products such as milk, cheese and eggs all saw price drops on the month.
"Heavy clothing and footwear discounting continued into February, as fashion sales continue to suffer due to unseasonal weather throughout the month.
“Retail operates on tight margins and it would be impossible to absorb all £5bn of new costs which hit the industry in April.
"Food inflation has jumped significantly in recent months and is forecast to hit 5 per cent by the end of 2025 as a result of the costs arising from the Budget.
"On top of this, retailers are still burdened by an outdated business rates system. It is vital that the government’s reform of business rates doesn’t impose additional costs onto retailers. Reform must leave no shop paying more.”
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UK Easter spending shifts amid cost concerns - Vypr research
Chocolate purchasing intent for Easter is expected to slide due to factors like the ongoing cost of living crisis and growing concerns over sustainability while Easter-themed wrapping paper is expected to be in demand this year, states a recent report.
According to a UK consumer survey by product intelligence platform Vypr, 39 per cent of people are cutting back on chocolate eggs this year, while 24 per cent plan to spend less than £5 on Easter gifts.
While health concerns have led 29 per cent of consumers to scale back their Easter egg purchases, sustainability is a factor for many shoppers.
The desire for more eco-friendly options is evident for some, as 17 per cent of people are looking to choose gifts with less packaging, and another 17 per cent are prioritising items wrapped in less plastic.
Additionally, 15 per cent are opting to skip Easter altogether this year to avoid contributing to waste.
Despite these preferences, many shoppers are still planning to spend this Easter, although most say it’s going to be very low-key, with the majority (53 per cent) expecting to spend less than £10 in total, covering gifts, decorations, and entertaining.
Encouragingly for retailers, over a third (35 per cent) of consumers plan to spend between £10 and £50.
Chocolate eggs will still play a key part in these purchases, but for some, alternatives are gaining popularity. Cash gifts (10 per cent) and toys (9 per cent) are among the most popular choices.
Additionally, 10 per cent are looking for chocolate that isn’t egg-shaped, while 8 per cent will be buying Easter decorations.
Vypr noted that many supermarkets, convenience stores and wider retailers have expanded their range of Easter decorations this year, with 21 per cent of shoppers saying they have noticed the increased variety.
However, only 8 per cent report that this is likely to persuade them to purchase. Overall, 54 per cent of people do not decorate for Easter, and of those who do, 14 per cent plan to reuse last year’s decorations, while only 10 per cent will buy new ones.
Ben Davies, founder of Vypr, commented, “Retailers have plenty to consider when planning their 2025 Easter ranges.
"A quarter of shoppers are looking to gift-wrap Easter presents this year, making Easter-themed wrapping paper a clear opportunity to drive sales.
"Meanwhile, one in ten plan to buy Easter-themed clothing for children – which is something supermarkets could tap into to boost seasonal sales.
“Sustainability is also becoming a bigger priority for consumers, and demand for eco-friendly alternatives will only grow. This is a key area for NPD teams to explore, ensuring their ranges appeal to increasingly eco-conscious shoppers.”
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UK consumers cut spending as economic worries grow - KPMG
Majority of Brits feel that the economy is heading in the wrong direction, and this feeling is leading many to cut everyday spend, defer big ticket buying, and save more, a recent report has stated.
According to the latest quarterly Consumer Pulse survey from KPMG in the UK, three in five people say that the UK economy is worsening, leading even consumers feeling financially secure to cut back on spending.
The number of people feeling that the UK economy is worsening grew by fifteen percentage points in the last three months to 58 per cent.
But despite the perception of a downbeat economic picture, the majority (55 per cent) of people currently feel financially secure (which is just 2 percentage points lower than the previous quarter).
The research gauged the confidence of 3000 UK consumers and assessed their buying behaviour over the last quarter.
Those feeling insecure about their finances grew from 21 per cent to 24 per cent over the last three months, but within that only 15 per cent of people reported that their finances are such that they are having to actively cut discretionary spend to pay for essentials – with a further 2 per cent saying they are incurring debt to pay bills.
The growing negative economic perception is leading more consumers to take spending action than those who say their financial situation means they need to, with:
43 per cent saying they are reducing spend on everyday items.
36 per cent saying they are saving more as a contingency.
29 per cent saying they are deferring big ticket purchases.
19 per cent feeling less inclined to leave their current employment.
Reflecting upon the findings, Linda Ellett, head of consumer, retail and leisure for KPMG UK, said, “Our research continues to show that while only a minority of consumers feel financially insecure, the majority feel that the economy is heading in the wrong direction.
"And this nervousness about the economy is leading many, including some of those who are secure in their current personal financial circumstances, to cut everyday spend, defer big ticket buying, and save more.
“Some may be taking this action as they prepare for higher costs, such as a new mortgage deal or the higher cost of travel.
"But other cautious consumers are certainly preparing for the potential impact on them from what they believe to be a worsening economy. This week’s Spring Statement needs to give people the confidence in the longer-term UK economic outlook.”
Comparing consumer spending in the first quarter of 2025 to the results from the final quarter of 2024:
Eating out remains the most common target (38 per cent) for those cutting spend. Takeaway was second, with 34 per cent of consumers reporting less spend over the last three months. The number of people saying they are cutting back was 2 percentage points higher than the last survey.
The number of consumers reporting they cut clothing and footwear spend in the last three months rose 3 percentage points from the last survey to 32 per cent.
Cost cutting behaviour when shopping was once again evident, with:
Nearly a quarter of consumers (23 per cent) saying they shopped for promotional or discount goods more in the last three months.
Just over a fifth (22 per cent) of consumers saying they bought more own brand or value goods in the last three months.
A fifth (21 per cent) of consumers saying they used loyalty schemes more this quarter.
70 per cent of consumers said that price was a top purchasing driver for everyday items – rising 3 percentage points from the last survey.
Holiday spend was again the most common ‘big ticket’ quarterly spend, with 21 per cent of consumers reporting related spend in the last three months. 30 per cent of consumers say they will spend on a holiday in next three months.
45 per cent of consumers said they bought no ‘big ticket’ items in December, January and February. And 38 per cent said they won’t make any larger purchases in the coming three months.
Cost-cautious Britons are spending more on home-cooked meals, risking to bring inflation back to grocery stores, a recent report has stated.
According to research by Retail Economics and NatWest, UK consumers expect to be spending more money on in the next three months on groceries while less on eating and drinking out.
It reflects a social phenomenon stemming back to the pandemic when people got into the habit of attempting restaurant-quality meals at home. Supermarkets subsequently put more effort into their premium ranges and have profited from a boom in demand.
Richard Lim, chief executive officer at Retail Economics, also said that Britain’s grocers should be able to reap the rewards of strong demand for high quality, niche and premium ranges, while keeping a lid on the price of more basic products.
“Grocers really need to focus on being competitive across those core essentials and then they will try to protect margins in other parts of the basket,” Lim said. “There might be deflation in some areas, inflation in other areas.”
Last week, supermarket Asda , slashed prices on 1,500 products in an effort to win back droves of customers who have switched to its rivals.
However, Bloomberg analysts state that price wars are "not necessarily incompatible with rising inflation", when broader economic conditions lift cost pressures.
Charles Allen, a senior retail analyst at Bloomberg Intelligence, said one of the fiercest price wars in the UK came during the high inflation of the late 1970s.
With the upcoming sharp increase in employment taxes and another steep hike in the minimum wage, retailers are expected to pass on some costs to customers, hence increase prices.
Supermarkets Sainsbury’s and Tesco together employ nearly half a million workers, and collectively the two supermarkets are facing an extra £390 million bill due to the budget measures, states the Bloomberg report.
“They’ve had many rounds of trying to operate as efficiently as possible in order to minimise prices for the consumer,” Jessica Moulton, senior partner at McKinsey, said. “The grocers are at their limits.”
Food inflation accelerated to 3.3 per cent in the year to January, and market surveys suggest it stayed high in recent weeks.