20 February 2025

Bira has responded to the latest BRC Consumer Sentiment Monitor, warning that the record low consumer confidence will create significant challenges for independent retailers in the coming months.

The February 2025 report shows a concerning decline in consumer outlook, with pessimism in the economy continuing to increase and rising to a record high. UK confidence has dropped nearly 40 points since July 2024.

 
Empty Street UK
 

Also reported:

  • Consumer outlook towards the UK economy over the next three months has reached its lowest level (-4pp), continuing its decline since October.
  • Expectations for personal finances over the next three months are at the worst ever recorded, with 29% of UK adults expecting their finances to get worse.
  • The proportion of consumers expecting to spend more over the next three months has decreased to its lowest since April 2024.
  • 56% of consumers plan to buy cheaper products to reduce outgoings, while 54% expect to cut leisure spending.
  • UK adults continue to expect to spend less across all categories apart from food and groceries, with expected food spending likely driven by anticipated price increases rather than higher consumption.
  • A quarter of UK adults have witnessed loitering or shoplifting around retail establishments in the last year.

 

Bira warns that these figures represent a concerning trend for high street retailers.

 
Jeff Moody, Commercial Director of Bira
Jeff Moody, Commercial Director for Bira, said: "The latest BRC Consumer Sentiment Monitor paints a worrying picture for independent retailers. These figures align with what our members are telling us - over 57% of independent retailers surveyed by Bira reported feeling somewhat or highly unconfident about business prospects for the remainder of Q1 2025, with 56% expressing the same lack of confidence for the rest of the year.

"With consumers actively looking to reduce spending and seeking out cheaper alternatives, independent retailers face significant headwinds. This situation is exacerbated by the upcoming cost increases set to take effect from April, including higher National Insurance contributions, National Minimum Wage rises, and Business Rates increases.

"We're particularly concerned about the shift in consumer spending towards essentials only, with many planning to purchase fewer items from both physical and online stores. The slight uptick in those expecting to use foodbanks is a troubling indicator of the financial pressure many households are facing.

"Independent retailers will need to focus on their unique value proposition during these challenging times while we continue to advocate for policy measures that support both consumers and the independent retail sector."

 

Bira's advocacy takes your voice to the heart of Parliament

Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.

Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:

  • Combatting the rising tide of retail crime
  • Advocating for changes in legislation that promote fairness and flexibility
  • Fighting for fairer business rates
  • Overall reducing the regulatory burden
  • £1 billion damages claim against Amazon by UK retailers
Learn more about our advocacy efforts
 

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We’re talking to a cross section of our members from across the UK, from single retail outlets to small chains, and from large department stores to leisure and hospitality.

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