Article: BDO Retail Forecasts 2017
21 February 2017
2016 began with a positive outlook for consumer spending; the economic climate continued to improve, interest rates were low, real wages were on the rise and unemployment fell, leading to the conclusion that retailers would be well placed to take advantage of the prospect of looser wallets in the coming months.
In reality, uncertainty has been the prevailing factor in 2016, brought about by the plunge in commodity prices, the UK’s decision to exit the European Union in June, and rising costs to retailers as a result of the National Living Wage and the further increases in operating costs. This theme looks to continue into 2017 with the significant fall in the value of sterling, the introduction of the Apprenticeship Levy, hikes in property rates and the relatively unknown impacts both of triggering Article 50 and the result of the US presidential election on international trade.
Our Retail Forecasts Report looks at the market factors that continue to challenge retailers as well as looking ahead at the threats and opportunities to the high street in 2017.
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