How has the UK fared on the high street in the lead up to Christmas 2018 & how has the impending Brexit vote impacted on the UK economy?
On the eve of the Commons vote on Theresa May’s Brexit deal, it has been announced that the UK High Street has seen its worst sales throughout November since 2015, with ever decreasing footfall being blamed for the uncertainty of the High Street brands.
On the eve of the Commons vote on Theresa May’s Brexit deal, it has been announced that the UK High Street has seen its worst sales throughout November since 2015, with ever decreasing footfall being blamed for the uncertainty of the High Street brands.
The uncertain consumers of the UK have been wary of too much frivolity when it comes to buying over the past few months. In addition, the ‘Black Friday’ deals online have added to the High Street slump, with one in three pounds being spent online. Despite ‘Black Friday’ being bigger than last year, it did little to boost sales across the board. BRC chief executive Helen Dickinson said:
“Only when the UK secures a transition period with the EU that ensures tariff-free, frictionless trade will retailers be able to breathe a sigh of relief.” (1)
Virtually Smart Ltd have already investigated the many new ventures popping up in our local high streets. With Climate Change being a very prevalent media story, many people are seeking alternatives to the vastly over packaged mass-produced items for sale in the branded shops. However, the Brexit deal, having hung over the UK like the proverbial pendulum for some 19 months & on the eve of the vote to agree or disagree with the Brexit deal, has most certainly tightened purse strings across the nation, with concerns growing for the alternatives should the Brexit deal fail.
The British Government have done their utmost to reassure the UK citizens with a series of Videos appearing in social media feeds, which explain what the Brexit deal means for different sectors. Twitter saw a ‘What the Brexit deal means for you in 60 seconds’ video appear directly from 10 Downing Street with reassurances that the UK will no longer pay vast sums into the EU & plough the money saved into the NHS. However, this is contradictory to the Budget, when taxes were raised to pay for the NHS?
The video continues to reassure that a ‘No Visa’ policy will exist for ease of movement throughout the EU. But the statement regarding the ‘Free trade area with the EU with no tariffs which will protect jobs & keep prices down’ & the full protection of ‘workers rights’ is what leads to come concern in the light of the recent economic sales slump.
Despite these reassurances, they do not seem to have secured a more fruitful sales economy in the lead up to Christmas, a time when most High Street names rely on the UK’s generosity of spirit & the money in their pockets.
We are all guilty of online shopping. In a time when people are working longer hours, sometimes working two jobs to make ends meet, the online shopping experience fits in to this life model. The giant that is Amazon.com is now worth $1tn & with this comes a greatly increased capacity for savings through the delivery network. Virtually Smart Ltd have previously applauded Jeff Bezos as one of the many entrepreneurs to create their businesses from a home-based beginning. However, could anyone have foreseen the impact this ‘delivery’ network could have had on the High Street & shopping in general?
The ease of a few clicks on your mobile phone app, has, for some, become the way they shop. The lack of human experience is a concern however. Having spoken to several friends who work in retail, they have all said that they have seen an increase in verbal abuse towards them & a lack of respect for their position in the shops they visit. Is this inability to communicate partly to do with the lack of physical shopping experiences people have these days? One has to wonder.
UK consumers are in a catch 22 situation. They are encouraged to return to the High Streets by local Councils to support their communities. However, due to vastly over priced rent & business rates for High Street premises, these shops generally have to sell products at a greater cost than the online alternatives, making the consumer turn to online shopping. Furthermore, the costs incurred by running a ‘Shop Fronted Business’ are astronomical in comparison to an online shop, which only needs a warehouse & minimal staffing.
So, what is the answer? How can the UK find a balance between regenerating the High Street & still seeing a growth in the online markets? How can we also prevent a monopoly of our High Street brands? We have already seen Sports Direct and House of Fraser tycoon Mike Ashley take over House of Fraser this year & he has revealed that House of Fraser might be merging with Debenhams. He was quoted as saying that “in many areas the High street was already dead” & proposed ‘an internet sales tax to help bricks and mortar stores compete against the likes of Amazon.’ (2)
Written by Katy Jane on behalf of Virtually Smart Ltd
(1) https://news.sky.com/story/black-friday-fails-to-lift-high-street-gloom-11571252
(2) https://news.sky.com/story/black-friday-fails-to-lift-high-street-gloom-11571252
