Retailers Brace for the Chill in Consumer Confidence
Buckling up for the holiday season, British shoppers are feeling a bit… off‑balance. The “Autumn Budget” released a few weeks before Christmas has nudged the mood of the market into a mild slump, and retailers are feeling the pinch.
What the Numbers Say
- Consumer Confidence Index: Slight lift to –3 in November, according to the BRC‑Opinium Consumer Sentiment Monitor.
- People are still planning to purchase gifts and festive treats – spending on personal retail remains a bright spot.
- However, expectations for non‑food, non‑drink purchases are roughly flat to negative.
Helen Dickinson’s Take
“There hasn’t been a major shake‑up in confidence after the Budget announcement,” said BRC chief executive Helen Dickinson.
– She added that many households worry about the economy as the festive season approaches.
“The one tiny improvement in people’s personal finance outlook is shadowed by a dip in their view of the wider economy.”
– The December figures left the dial less than a millimetre in either direction for households, but the retail sector is feeling it more strongly.
Retailers Facing a £7 B Cost Burden
The Budget is expected to add over £7 billion to retailers’ costs in 2025. That means two obvious choices: raise prices, or tighten the belt on hiring and shop openings.
In short, holiday shoppers may end up paying more for that last‑minute gift, or retailers may cut back on new stores and job opportunities. The easier the choice, the brighter the economy, right?
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