A three-page quarterly economic summary which aims to provide readers with a brief overview of the BRC’s economic indicators - where we are now, and what we expect in the future. See bottom of page to access full document.
2021 saw a return to growth for the retail industry after a very challenging 2020. This was driven by the strong reversal of fortune in non-food, which saw growth of over 15% (from the lower 2020 base).
While online sales were down on 2020, they remain well up on 2019 levels as the pandemic continues to disrupt consumers. Shops saw much better performance throughout the year than in the previous one, but the high proportion of hybrid working, including a government work-from-home mandate at points throughout the year, meant footfall remained well down on pre-pandemic levels.
Looking forward to 2022, the trajectory for consumer prices is very clear: they will continue to rise, and at a faster rate. Retailers can no longer absorb all the cost pressures arising from more expensive transportation, labour shortages, and rising commodity and global food prices. Furthermore, as customers manage rising costs, their remaining disposable income also faces greater competition from a resurgence in tourism, eating out, sport and live music.
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