The UK economy has been severely impacted in recent months by rising interest rates, spikes in energy prices and falling consumer demand which has resulted in a marked economic slowdown. In retail this has been exacerbated by labour shortages, geopolitical fallout from the Russian invasion of Ukraine and volatile exchange rates. Consequently, there is a looming risk of recession, with struggles being felt across the board and impacting retailers, suppliers, logistics and wholesalers.
Another challenge retailers face is the debt conundrum. Many businesses across Europe received Covid relief loans which are maturing, and companies will be refinancing into a very different environment. In addition, debt issuance has plummeted this year, and lenders are being more cautious in rolling over loans. As we approach Black Friday and Christmas, how can retailers survive in this period of volatility?
We share our insights on how retail has been impacted by the economic slowdown and key steps for survival in "Walking a Tightrope: Retailers Grapple With Inflation, Debt and Dwindling Demand".
Our team is currently working with clients, implementing plans to deal with this volatility. If you would like to find out more about how we can help you transform your consumer or retail business, contact a member of the team.
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