The UK government triggered Article 50 in March; however, worryingly for retailers, those aged under 55 who voted to remain part of the EU have said that they will postpone spending.
GlobalData Retail’s monthly Brexit retail spending index measures whether consumers feel they will postpone spending as a direct result of the UK’s impending exit of the European Union (EU). While March’s index did improve on February, growing 3.0 points to +17.7, this was driven by consumers who voted to leave perceiving an improvement in their financial situation and as a result feel able to spend more freely on retail.
However, not all consumers are confident regarding the UK’s decision to exit the EU, young remain voters, in particular, have asserted they will postpone spending as a direct result of Brexit, further worsened by the triggering of Article 50. This is a worrying prospect for retailers who actively target this demographic.
Retailers such as Top Shop, Apple and Zara Home, who target a younger market, may see a decline in sales, particularly as some of these retailers have recently implemented high blanket price increases across all products. Those targeting these consumers must highlight value for money among their product ranges and look to encourage spend through promotional activity.
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