UK retail 'to grow by one per cent in 2020'

The UK’s retail sector should be “cautiously optimistic” about its prospects in 2020, according to the KPMG and Ipsos Retail Think Tank.

The sector is predicted to grow by at least one per cent this year, after what the report described as “three and a half years of pain”.

Perceived certainty in the UK after the general election will likely increase consumer confidence and spending, with non-food retailers that have adapted well over the tougher years now feeling the benefits of a ‘turning point’ for the sector.

While KPMG and Ipsos were cautiously optimistic that political stability will translate into improved sales, they stressed there are still plenty of unknowns to be confronted, including Brexit obstacles around tariffs and trade deals for retailers to negotiate.

The report also warned that “inefficient and irrelevant legacy retailers will continue to struggle in 2020”, with the number of restructures and administrations predicted to increase on 2019.

KPMG's head of retail Paul Martin commented: “It is becoming increasingly clear that whilst the three key historic drivers of purchase decisions – value, convenience and experience – remain important, new factors are rapidly emerging.

"I would argue that a second lens of factors should now be considered, these being choice, purpose and privacy."

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