HMY > Brexit and Retail – Weathering the Perfect Storm

Brexit and Retail – Weathering the Perfect Storm

It’s no secret that 2018 has been a turbulent year for the retail sector so far. News of job losses, the collapse of Toys R Us, Maplin and Poundworld, and the planned closure of 31 House of Fraser stores have all dominated the headlines, painting a picture of Brexit-induced doom and gloom.

Imagen_1__blog_London

The side effects of Brexit, including falling consumer confidence, stilted wage growth and lack of clarity on the UK’s future trading relationships with the EU, are undoubtedly contributing to the continued climate of uncertainty in the sector and beyond. These factors, coupled with rising business rates and operating costs, are placing increased pressure on the high street as spending slows down and shoppers become increasingly price-driven.

Although retailers are feeling the short-term effects of lack of consumer spending, it is predicted that more than three quarters of the impact of Brexit will fall on just five sectors. Financial services, automotive, agriculture, food and drink, and chemicals and plastics are likely to be most affected, according to a study published earlier this year by consultancy Oliver Wyman and the law firm Clifford Chance.

Just this week, the British Chambers of Commerce stepped up its pressure on the Government, publishing a list of 23 ‘real-world’ questions that it says urgently need answers as the UK’s EU exit approaches. The list includes clarity on VAT, tariffs, customs and regulations, with high-profile businesses including Airbus and BMW threatening to review further investment in the UK.

From a retail perspective, there is no doubt that it would be foolish to underestimate the current market conditions and uncertainty that have been forced upon the UK by Brexit, but it is also important to consider there are wider factors at play which are contributing to a perfect storm of unrest – both in the UK and internationally.

Brexit is set against a backdrop of a dramatically changing retail landscape – with e-commerce challenging bricks and mortar stores and placing growing pressure on retailers to keep up with the pace of change and innovation in the sector.

The role of the high street has shifted, with physical stores needing to find a new point of difference to stand out as a destination rather than a place to transact. This could be via an increased focus on customer experiences or providing a greater bridge between the online space, with click and collect collection points.

Retailers offering a true omni-channel experience via their bricks and mortar real estate are those that are best placed to thrive once the wider impacts of Brexit have settled. Utilising the space to create true stand out and synchronising messaging across all channels will be crucial to weathering the storm.

As a global company with an experienced team in the UK, HMY are able to offer insights into how retailers can tackle the uncertainty Brexit brings. This may be achieved through various solutions such as unique concept designs, the latest retail technology to get ahead of competition or putting a focus on expanding globally. Whatever your issue may be, we are sure HMY can provide you with a tailored innovative solution.

Latest news

Retail Travel: A Key Channel For Luxury Brands16/08/2018

The increase in airport traffic in recent years has allowed travel retail to grow considerably. There are plenty of brands that have identified the opportunities offered by commercial spaces at...

Read more

Apparel Retail Challenges When Threatened by Online Shopping09/08/2018

Generally, in the retail world, we’ve seen new challenges due to the advent of online shopping. The fashion industry is no different. Buying clothing online has led to a boom in the industry....

Read more

The Retail Sector’s Digital Transformation07/08/2018

Digital technology is very influential in the world of retail....

Read more

HMY Joins The Diálogo’s Board of Honor at the Spanish-French Friendship Association03/08/2018

HMY has become a part of the Diálogo’s Board of Honor, an association that brings together 50 stakeholders from economic and industrial sectors within both Spain and France....

Read more

HMY’s Factory In Turkey Receives Triple Certification01/08/2018

HMY’s constant commitment to the environment and sustainability has once again received important recognition.  This time, our HMY factory in Çerkezköy, Turkey, has obtained the triple...

Read more

Brexit and Retail – Weathering the Perfect Storm24/07/2018

It’s no secret that 2018 has been a turbulent year for the retail sector so far. News of job losses, the collapse of Toys R Us, Maplin and Poundworld, and the planned closure of 31 House of Fraser...

Read more

Travel Retail: How Does It Impact The Customer?19/07/2018

Within retail there are many specialized sectors that cater to specific needs and serve particular circumstances. Given its current status and due to its growth, one of the most relevant sectors is,...

Read more

The Auto Industry, Pioneer in Creating Personalized Experiences07/07/2018

The automotive industry has some specific characteristics, especially with respect to retail. Its stores need a spacious layout and large size to focus on showing a product that’s very different...

Read more

HMY Germany, Recognized At The Dach Popai Awards05/07/2018

A few weeks ago, we received confirmation that HMY Germany had been nominated at the Dach awards, the German edition of the Popai Awards, which is one of the most prestigious awards in the retail...

Read more

“Innovation is an essential factor to stand out in the Health and Beauty sector”03/07/2018

The current scene in the retail sector reflects more competition between brands globally to face a common goal: create shopping experiences at their retail...

Read more

HMY: innovation in retail