Brexit uncertainty as the biggest concern for consumers heading into 2019. This is according to new research conducted by NatWest and Retail Economics.
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The report shows a deterioration in confidence on personal finances, house prices and job security. These are all critical in supporting a retail sector undergoing a period of change.
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The report highlights how consumer behaviour has changed the way retailers use property. It has led to over capacity of physical space in the UK market.
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Traditional retail business models will be pushed to their limits. Newly emerging models are gathering pace, boosted by rapid consumer adoption.
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The impact streaming services had on entertainment retailers will expand to other sectors.
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New models of consumption have the potential to alter the retail norms of today.
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Richard Lim, Chief Executive, Retail Economics, said: ?I can’t recall a more challenging time to predict the future.
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“Uncertainty persists around the Brexit deal and the size of its potential disruption to the economy.
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“The priority will be to focus on strategic transformation to pivot business models so they don?t fall behind in a digital-driven age.
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“The channel shift to online presents a particular challenge to bricks and mortar business models.
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?I expect the industry to remain locked in a period of disruption throughout 2019.?
