No Growth, Rising Business Rates, and Brexit Threat Loom for Retailers
- Worst Christmas for retail in a decade
- Retail sales growth at 0% for the first time in 28 months
- Non-food items sales dropped by 0.4%
- Food items sales increased by 1.8%
- Like-for-like sales fell by 0.7%
- Business rates set to rise this year
- No deal Brexit threat looming
- Growth in food sales provided a glimmer of hope
- Continued contrast between high street and online retail performance
- 2018 saw slowdown in online retail sales
The retail sector has experienced its worst Christmas performance in ten years, with retail sales growth at 0% for the first time in 28 months. The British Retail Consortium (BRC) reported that non-food items saw a decrease of 0.4% while food items had a slight increase of 1.8%. The total three-month average year-on-year sales showed an uptick of 0.5%. Like-for-like sales fell by 0.7%. Helen Dickinson OBE, chief executive of BRC, stated that the government should urgently reform the business rates system and champion the future of retail in the UK due to its unsustainability. Paul Martin, UK head of retail at KPMG, added that despite some retailers attempting to generate sales through slashed pricing, it was not enough to encourage shoppers. He also mentioned that growth in food sales provided a glimmer of hope but warned that the first months of 2019 are unlikely to hold much improvement. The contrast between high street and online retail performance continued, with a slowdown in online retail sales seen in 2018.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the retail sector’s performance during Christmas and includes quotes from experts in the field. It presents facts and figures without any significant issues related to digressions, misleading information, or personal opinions masquerading as factual data.
Noise Level: 3
Noise Justification: The article provides relevant information about the retail sector’s performance during Christmas and includes quotes from experts in the field. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, as well as actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector and related companies
Financial Rating Justification: The article discusses the worst Christmas performance of the retail sector in 10 years, affecting sales growth and impacting businesses within this industry. It also mentions potential changes to business taxes and the threat of a no-deal Brexit which can affect financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text.
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