The Year Ahead for Retailers
2024 was a year of change for many consumer and retail businesses, including for our clients in the sector, who continue to face persistently high levels of inflation and decreasing consumer confidence. It is clear that businesses need trusted guidance and support as they navigate multiple challenges in the UK including recent changes to national insurance contributions and increases to wage bills as a result of October’s budget.
It appears that the headwinds many businesses face continue to persist this year so far compounded by the likely implementation of much rumoured increase in tariffs by the new American administration. Christmas trading may have provided some relief for businesses short term, as evidenced by many of the recent trading updates released, but most companies highlight the high degree of continuing uncertainty:
“As we enter the new year, the outlook for economic growth, inflation and interest rates is uncertain and the business faces higher costs from well-documented increases in taxation.”
“We’ll have to look very carefully at all hiring decisions”
“It [NICs] is coming at us fast in a way that was unexpected and will bring inflation as a result”
“Looking into 2025, employment costs will result in further overall cost inflation, although wage increases should provide support to consumers. “
These were just a few examples of what businesses have been saying the challenges they face this year are. But it isn’t all doom and gloom. With the Chancellor’s growth agenda and better than expected inflation figures, there is a hope that things will start improving.
From a CDR perspective, 2024 was an incredibly exciting year to be supporting our consumer and retail clients. We also hosted a very successful inaugural retail and consumer breakfast event which featured a panel discussion with David Butler of Weird Fish, Linda Ellett of KPMG, Mike Watkins of NeilsenIQ and Retail Week’s Hugh Radojev, where we were delighted to see many of you. You can find more of our highlights in the flyer below.
