Join our community

Small Retailers have nothing to fear from Brexit

Well, the deed is done and the people have 'spoken.'

At this early stage it's impossible to predict whether Brexit will be good or bad for the long-term future of the country. The success of all retailing depends on the confidence levels of consumers and their propensity to spend. Any variable in the economy that takes disposable income away from consumers is likely to have a negative effect.

This is far from understood or clear cut but could include: increases in prices (lower pound buys less), reduction in house prices (treasury prediction), contraction of GDP leading to a slowing in job numbers / reduction in benefit payments, possible increase in basic tax rate (treasury prediction), and a hit on pensions due to lower bond and equity yields. Over-arching all of this is the uncertainty around the UK as an investment destination.

I think it's fair to say that the future is going to be 'challenging.' However, we've been through turbulent times before. I have a clear recall of the seventies (three day week et al) and the early nineties when the economy went through difficult times. And retailers flourished.

The simple truth is that good retailers will always flourish and poor ones will perish. I think it will be the larger outlets feeling the heat as squeezed consumers continue to look for value and to shop even more on a little and often basis. This is an opportunity for small independent retailers and they should work hard to capitalise. Good retailers have nothing to fear from Brexit.

Start a discussion of this article