However, Doug Barber, managing director, Barber Design shared a pragmatic outlook with www.retaildesignworld.com ‘I suspect that whatever challenges the Retail design industry will face …will be met by a creative and adaptive response… We all have to adjust our strategy as market forces change.’
This insight may influence the future of your retail shop. But what are the potential gains and losses for small independent retailers, post- Brexit?
The large number of EU nationals working in the UK retail industry at present may be unlikely to have to leave, not least because this could result in a skills shortage. Also employers could see fewer restrictions and regulations placed on them, which are particularly onerous for small business.
There is a strong possibility that the Bank of England will cut interest rates further. Leases and rental costs may fall or stay steady. This could be favourable for small businesses.
UK imports from the EU for August 2014 were £15.9 billion, making the UK and important buyer. Retailers make up a substantial part of that. However, the effect of a weak GBP will mean retailers need to think carefully about inventory purchasing costs. We could see a rise in British made produce and local produce. Ultimately, retailers will need to keep a track of what sells and how much it costs them.
Uncertainty in the markets could potentially have an effect on consumer spending. However, tourists may find they have greater spending power in the UK so this may drive tourism-related sales. The winners will be looking closely at the spending in their business and whether they are performing to provide the best returns.
Claire is a WOWPOS Consultant specialising in helping small businesses in the retail and hospitality industry to grow their businesses using EPOS Solutions.