Despite concerns over spending following Brexit, figures from the British Retail Consortium (BRC)-KPMG show a jump in UK retail sales of 1.9% in July.
The long term impact of Brexit is yet to be seen, but in the first full month following the EU referendum, consumers are still out there spending money, said digital commerce company Tryzens.
Andy Burton, ceo of Tryzens, noted: “The initial doom and gloom of Britain’s decision to leave the EU was felt within the political and economic worlds but so far, consumers have seen little impact.
“Global retailers have yet to put up their prices, summers sales are still going on and the warm July weather has all led to consumers spending more compared with last year. With holidays to the continent proving more expensive because of the weak sterling, Britons are choosing to holiday at home and foreign tourists are flocking to our cities, both serving to increase sales figures.”
He continued: “The strong consumer confidence is not only a boost to the economy, but also to retailers who must now be on top of their game to entice ‘staycation’ Brits and holiday makers from abroad.
“With overall shop prices seeing a deflation of 1.6%, retailers are cutting prices or increasing promotional activity to help draw in the crowds. Increasingly consumers are turning to technology to research and buy items, with an average weekly spend online of £963.8 million in May, according to the Office for National Statistics (ONS).”
But Andy pointed out that the ONS report was not all positive, with a 50% decrease in consumers’ confidence in their ability to spend on non-essential items. “Little material impact has been felt by most households in the aftermath of Brexit but that has not stopped many from beginning to tighten their purse strings in anticipation of economic downturn,” he said.
“In addition, there is growing coverage that larger capital spending, most notably around home purchases and moves, are feeling a negative impact as people remain uncertain on the wider risk of property price trends. Again, however, this has not impacted on discretionary spending as yet.
“With the potential for downturn, retailers will naturally be looking to ensure their offering is attractive, their customer experience positive and their online service watertight in order to keep consumers happy, loyal and engaged.”
Tryzens delivers digital commerce solutions to retailers. From Debenhams, Jack Wills, Avenue 32, Whistles and Timberland, Tryzens has delivered over 100 solutions across the globe.