Home Economy Barclays: Poor retail sales figures down to rising supply chain costs
Retail Sales Index for Scotland figures – you don’t have to look far for a reason for falling profits, claims Barclays
Poor retail sales figures – as published today (Wednesday, 3 May) by the UK Government – could be down to increased supply chain costs and related issues, according to Barclays.
Euan Murray, Relationship Director for Barclays Corporate Banking in Scotland, said: “Increased supply chain costs and issues could go some way to explaining the falling figures in this quarter, from the bad weather in Spain affecting food imports to the weak value of Sterling, you don’t have to look far for a reason. The sector has also had the added pressure of a later Easter, which could have resulted in less consumer spend in Q1.
“Overall, consumer behaviour and their expectations are changing dramatically with many looking for brands to offer in-store ‘experiences’ and ‘entertainment’. Knowing what the consumer wants and how they want to buy it has become crucial.
“With 36% of UK e-retail sales via mobile, retailers must invest in their online and mobile shopping platforms to improve the user experience and drive growth.
“However, with inflation in the UK set to accelerate faster than earnings growth for the first time since 2014 and consumers planning to spend less on every category with the exception of grocery, its looking like it’s going to be an uphill battle for the high-street.”