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According to a report from KPMG/Ipsos Retail Think Tank, retailers going to brace for another tough year ahead as geopolitical and macroeconomic obstacles along with an increase in number of regulatory compliance issues and ongoing structural changes within the industry rear their heads.
The report emphasized that the key challenge will be the consumer spending in the upcoming year. Despite expectations that there will be an increase in wages in the second half of the year, the divide between food and non-food will be exacerbated over the coming six months. Thanks to rising inflation.
KPMG’s Paul Martin points to focus on consolidation, just like 2017’s Tesco/Booker merger which is likely to continue as the market share going to remain as a “core focus for businesses.”
More number of privacy and data protection laws coming into play next year, in the form of General Data Protection Regulation (GDPR). It might have a significant effect on retail sector

The Retail Sector Report submitted to the House of Commons Committee on Exiting the European Union, has been criticised by the BRC for not detailing the impact changes to our trade agreement with the EU will have in the future.

According to BRC policy adviser William Bain the report does not “provide any data or analysis at all on the future if the basis of the UK’s trading and commercial relationship with the EU changes”.

“The BRC has shown throughout 2017 the major implications there would be for consumers on prices, choice and availability of goods of a Brexit without tariff-free trade with the EU,” he added.

On prices, losing reciprocal tariff-free trade with the EU, may affect in raise in prices for food and other imported consumer goods.

On customs, consumers face delays on the supply of goods and without a deal to minimise non-tariff barriers. The retail industry would affect seriously on people without access to labour from the EU, with

It is expected that shops are likely to be more crowded with long queues than usual in many places across UK. Retailers to open shops as late as 11am and close as early as 4pm.
According to the Center for Retail Research, smaller stores with premises less than 3000sq ft may be the saving grace for last minute Christmas shoppers, as laws on Sunday trading hours are not applicable for them.
The Center for Retail Research also predicts the spending amount on Christmas Eve would surpass £105 million. Around 1.5 million shoppers expected to give convenience stores and garages a sales boost with last-minute food and gifts purchases.
In mean time, online retail giants such as Amazon, and high street stalwarts Debenhams and John Lewis are set to launch New Year internet sales on Christmas Eve and Christmas Day, offering discounts up to 66% forecast.
“More small shops than ever will open on Christmas Day,” Center for Retail Research director Professor Josh

According to trends observed by auditing firm PwC, retailers will run more promotional activity in the next seven days. It will overweigh the promotional activity that occurred during the Black Friday sales weekend at the end of November.
PwC consumer markets leader Lisa Hooker said “retailers are upping the ante on promotional activity this year in order to clear Christmas stock”.
Lisa Hooker also said that “As we rapidly approach Christmas itself, we are already seeing an uptick in promotional activity as retailers trying to attract customers through their doors and clear festive stock, in particular as last week’s snow and ice put a dent on high street footfall across large parts of the country”.
Last year, we surveyed online retailers out of which 98% had some kind of homepage promotion in the week before Christmas.
“While this year’s trend does not suggest we will reach the same levels, we are expecting to see more bargains for shoppers

In a case led by Coty, US cosmetics brand which argued that German retailer Parfümerie Akzente sold its goods on sites against Coty’s wishes. According to the European Court of Justice online market places detracted from the image of luxury brands.
The ruling said that Luxury brands have no contractual relationship with the online market places. According to which in turn are not required to comply with the brands’ quality criteria.
The criteria are imposed on all of its authorised distributors. It is under the terms of their selective distributive agreements.
According to the legal experts online market places have to direct contractual relationships with luxury brands in order to be able to continue to offer them on their platforms.
In the mean time, luxury department store retailers such as Harrods, Selfridges, Harvey Nichols and Liberty – as well as luxury brands that have direct-to-consumer sales points – observe a boost in sales as

The truck will initially pop up around the two cities many times a month, featuring one selected special deal per appearance with limited stock on truck. Once customers sign up to the Treasury Truck service, a text alert will be sent to the customers’, when the truck is in town and revealing that day’s special offer. After customers purchase a product in the Amazon app, to pick the item from the truck they can select a convenient time and place. The truck will be featured with be featured with celebrity appearances, interactive games, seasonal events along with on-the-spot prize giveaways. “We all remember the sense of excitement we felt as children when we heard the jingle of the ice-cream van, and we hope to bring that same feeling with Treasure Truck,” Amazon UK’s head of Treasure Truck Quick said. “Every product has been cherry picked, from must-have Christmas presents to jaw-dropping offers, ensuring Treasure Truck will turn an ordinary day into something a bit more