’Optimism is in the air’, according to the British Retail Consortium’s (BRC) Economic Briefing Report.
Key insights from the new research reveals the following:
- The latest UK economic data has been significantly better than expected. GDP fell by 2.9% in January compared to December, beating expectations of a drop of 4.9%. OBR forecast in March that the UK economy would regain its pre-pandemic size in the Q3 2022, six months earlier than it forecast in November.
- Unemployment, unexpectedly, fell to 5% in January and the number of UK furloughs dropped by 5% in February. It looks like the economy has learnt to cope with health restrictions and can operate at higher capacity.
- BRC-KPMG sales rose in February by 1.0%, although Non-Food sales remained in negative territory (-5.5% over the three months to February).
- But the better-than-expected performance of the UK economy was overshadowed by January trade figures, with EU food exports down 75.5% on the year and EU food imports down 24.8%.
- However, there is a strong optimism for a robust rebound from households and businesses alike.
Additional Guidance and Resources
- Re-examining Retail: What do customers expect in 2021?
- Footfall down ’significantly’, says new BRC report
- ’Sales improve as outlook brightens’, says BRC report
- Bira: Reform business rates to ’level up playing field’
- Wales extends rates relief for another year
- Bira ’broadly welcomes’ Budget support for indie retailers
- Abolish business rates until 2022, says Bira
- Bira fights for indie retailers in meeting with business minister
- Indies want to help take economy forward, Bira tells new Business Minister
- Five-point plan to save indie retail sector gets Bira’s support