Brexit uncertainty as the biggest concern for consumers heading into 2019. This is according to new research conducted by NatWest and Retail Economics.
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.
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.
Traditional retail business models will be pushed to their limits. Newly emerging models are gathering pace, boosted by rapid consumer adoption.
The impact streaming services had on entertainment retailers will expand to other sectors.
New models of consumption have the potential to alter the retail norms of today.
Richard Lim, Chief Executive, Retail Economics, said: ?I can’t recall a more challenging time to predict the future.
“Uncertainty persists around the Brexit deal and the size of its potential disruption to the economy.
“The priority will be to focus on strategic transformation to pivot business models so they don?t fall behind in a digital-driven age.
“The channel shift to online presents a particular challenge to bricks and mortar business models.
?I expect the industry to remain locked in a period of disruption throughout 2019.?