Introduction from Mark Hudson

What's in Store?

Business insights for the retail and consumer sector

Summertime, and the selling ain’t easy

It’s hard to think of another period of such extended uncertainty. We had the long phoney war leading up the election, and then that astonishing few days while the coalition was being formed. And now we have yet another uncertain phase, as we wait for the Emergency Budget. In the meantime the High Street is having to cope with a number of different pressures, almost all of which are contributing to sluggish sales. One is the fact that the UK is clearly limping rather than bouncing out of recession, as I heard a commentator say on The Today Programme, on BBC Radio 4, this morning, which is making consumers understandably cautious about their jobs and their spending. Another is the continuing low level of inflation. 

All this adds up to a retail sector that’s still treading water, which is not a good place to be at this time of the year. PwC’s view is that we’re not now likely to see a double dip recession in the UK, but even if that proves to be true, it isn’t translating into much tangible optimism out in the market, and no-one’s predicting a strong recovery in the latter half of the year. That said, some businesses are continuing to do well - some of the top brands are showing strong performances, for example, the value sector still thrives, and young people are still spending. All the same, most retail and consumer businesses will have to continue to run tight ships for the next few months, and do as much as they can with as little as possible. They also need to find new ways of engaging with their customers and building loyalty, and we have a piece in this edition about how some are using social media to do just that. We also have some thoughts on how the imminent budget may affect the sector, and a very interesting case study on how PwC helped one well-known but loss-making retail business turn itself around, without needing to resort to insolvency.

We’re also looking at some new ideas for What’s in Store? at the moment, so watch this space, and if you have any thoughts or feedback you want to contribute, then feel free to contact me at mark.hudson@uk.pwc.com.

Have a profitable summer!