UK | Retail
Retail Focus Q1 2018
BNPPRE Retail Focus Q1 2018The UK retail sector experienced a challenging start to the year, with several major CVAs and administrations. Despite this, consumer confidence edged up as pressure on household finances eased.
- Economy: The pressure on household finances appeared to be easing at the tail end of Q1 2018. February was the first time in a year that nominal wage growth exceeded inflation.
- Occupier: Whilst consumer and economic pressure may have increased pressure on several retailers, it is more likely that failure to keep up with changing consumer preferences and a lack of investment in the physical store environment were more significant contributing factors.
- Investment: Unsurprisingly, the negative sentiment surrounding the retail sector adversely affected investment in the first quarter. Total investment of £1.37bn represented a decline of 22% compared to the same period in 2017.