KPMG/IPSOS Retail Think Tank: Cautiously Optimistic For 2020

The UK’s retail industry is likely to grow by at least +1.0% in 2020, despite weaker food sales, according to the latest predictions from the KPMG/Ipsos Retail Think Tank.

• The UK retail sector is predicted to grow by at least +1.0% in 2020, following three and half years of pain.
• Perceived certainty in the UK political landscape is likely to increase consumer confidence and kick start spending.
• Non-food retailers that have adapted well over the tougher years should now feel the benefits of what the RTT members describe as a ‘turning point’ for the retail sector.
• A focus on communicating retailer values is considered to be a key part of any successful growth strategy next year.
• Weak food sales over the Christmas period are expected to set a precedent for what will be a difficult 2020 for supermarkets.
• Inefficient and irrelevant legacy retailers will continue to struggle in 2020, with the number of re-structures and administrations predicted to increase on 2019. 

The General Election result, following over 36 months of political volatility, brings with it a perception of clarity regarding Brexit. The RTT believe this will be welcomed with open arms by many UK shoppers in the short-term, even by those who feel that Brexit may be damaging to the UK economy in the long-term. Retailers should also expect to feel the benefits of growth stimulated by a recovering housing market across the UK in 2020.

Source : KPMG/IPSOS

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