1、 Retail Resilience:Strategies for Success in an Uncertain EconomyRetail Forecast Report 202512024 Retail PerformanceSophie MichaelPartner,National Head of RetailWhilst the year started with promising signs with actual inflation falling and talk of cuts in interest rates,optimism soon faded,particula
2、rly in the fourth quarter;the most critical quarter to Retailers.Interest rates remained sticky for most of the year until a 25bps drop in the summer.Consumer confidence began to rise in the first part of the year but again fell in recent months.As we look at our High Street Sales Tracker(HSST)data,
3、retail sales have been challenged.Online sales saw some revival which was in contrast to the falls seen in brick-and-mortar stores which are still adapting to new consumer behaviours.Furthermore,we can see retail has underperformed against other discretionary spend categories such as travel and leis
4、ure.So how can retailers remain relevant and compete for consumer spend against other discretionary spend categories?The salt in the wound for the retail sector came in the Autumn Budget which outlined a significant increase in the overall cost of doing business mainly in the increase in NI contribu
5、tions and the increase to the minimum wage.To win in 2025 will be tough but we are seeing some success stories.Many of the successes in retail are those which are adapting to the key trends outlined in this report.Inside this short report you will find our view on the trends to look out for,how thes
6、e are impacting different retail segments and examples of what good looks like in the sector.Introduction from Sophie MichaelComing into 2024 there was a sense of confidence for the retail sector.Inflation and interest rates were forecast to fall,freight challenges were easing and consumers started