SNIPPETS FROM RETAILSECTOR.CO.UK
RETAIL NEWS
UK and Ireland
retailers warn of
no-deal tariffs
With just 36 days until the UK leaves
the EU the leading retail bodies in
Ireland, Northern Ireland and the United
Kingdom have said a no-deal Brexit
could have “devastating consequences”.
The British Retail Consortium (BRC),
Northern Ireland Retail Consortium
(NIRC) and Retail Ireland have issued
a joint statement highlighting how
increased tariffs and new regulatory
checks would lead to increases in the
cost of making fresh food and drink
available to consumers.
The trade bodies said these tariffs
could see increases of up to 45% on
some everyday food items should
the UK and EU revert to World Trade
Organisation Most Favoured Nation
Tariffs. Additionally they also warned
of concerns regarding the cost
implications of non-tariff barriers such
as checks and delays.
Director of the NIRC, Aodhán
Connolly, said: “A no-deal Brexit brings
tariffs, customs processes, checks and
costs which our industry, and Northern
Ireland families in particular, cannot
afford to absorb. Our households
already have half of the discretionary
income of British households and less
than those in the Republic of Ireland. A
no-deal Brexit will hit us first and hit us
hardest. This is not acceptable.
“A hard Brexit means a hard border
and the disintegration of supply chains
that have been built up over 40 years
of EU membership. This is not a binary
choice for Northern Ireland between
trade with the UK and trade with the
EU. Our economy is built on access
to both markets and we need that
to survive. No-deal makes NI a less
competitive place to do business and a
more expensive place to live.”
14 JEWELLERY FOCUS
ONLINE RETAIL FOOTFALL
Online retail recorded its worst January
sales growth in three years last month,
as the industry’s poor recent sales
performance continued into the new
year, according to the IMRG Capgemini
eRetail Sales Index.
E-commerce saw a 7% year-on-year
increase which was slightly above the
three-month average of 6.3% year-
on-year, however this was offset by
December’s record low performance.
When looking at the six and 12 month
averages, January fell below the growth
rates of 7.9% and 11.2% respectively.
Health and beauty enjoyed an 8.1%
growth in January while gifts and
electricals recorded drops of 25.8% and
19.1% respectively.
Andy Mulcahy, strategy and insight
director, IMRG, said: “2019 could well
prove to be a very challenging year,
and the January growth was a slight
improvement on the recent difficult
trading conditions.
“The discounting that has been rife
since all the way back in July continued
into January as expected due to post-
Christmas clearance – the challenge
for retailers now is how to ease off
the reliance on discounting for driving
sales. As we’ve moved into February,
many sites have either switched off
discounting or lessened the prominence
of such offers. It’s now a matter of
holding nerve, but the positive thing for
clothing retailers is the weather – it has
been very mild and sunny for this time
of year, so that may help to stimulate
activity on spring ranges that isn’t
linked to discounting; you should never
underestimate the potential impact of
the British weather on retail.”
Bhavesh Unadkat, principal consultant
in retail customer engagement,
Capgemini, added: “January growth
was half that of last year and below
the five year average for the month,
failing to recuperate sales from the poor
performance in December 2018.” January footfall declined 0.8%
according to the latest data from Ipsos
Retail Performance - the lowest decline
in three years.
Online retail
records its ‘worst
January sales
growth’
January posts
lowest footfall
decline in three
years
Ipsos said the figures indicate that
Britain’s shoppers “are getting on with
the certainties of everyday living”
despite the uncertainties of Brexit.
Further figures showed that year-on-
year deficits over three months have
declined by -2.2% over the period
of November 2018 to January 2019,
compared to -11.0% in March-May 2018.
January’s figures marked the lowest
fall back from the Christmas period
since 2008, with footfall in the first
month of 2019 down -26.5% compared
to December.
Dr Tim Denison, director of Ipsos
Retail Performance, said: “Shopping
was bolstered by a combination
of continued falling inflation rates,
which now stands below the Bank of
England’s marker of 2%, and increasing
wages which, at 3.4%, are growing at
the strongest rate since the financial
crisis. Households will not only be
replenishing their depleted savings
with this extra income, but are also
spending some of it on the high street.”
Ipsos found that the region with the
weakest year-on-year figures for the
sixth consecutive month was South
West England and Wales, recording a
decline in footfall of -3.9%. Elsewhere,
stores across Northern England,
Scotland & Northern Ireland, and The
Midlands all experienced a growth in
footfall against January 2018.
March 2019 | jewelleryfocus.co.uk