UK: 2013 retail growth driven by rising prices

According to a new report from Verdict and SAS UK, the UK retail sector is set to grow by 1.8% in 2013 with total retail spend hitting £300.7bn – the highest rate of growth since the recession began, although it points out that this growth is largely down to rising prices.

Food, which accounts for 45% of retail spending, remains the main driver behind retail growth at a total growth rate of 3.1%. However, the report says this is mostly due to price inflation, meaning UK shoppers will be spending more to buy essentially the same amount. A large part of this relates to the increasing cost of logistics and supply chain.

SAS UK & Ireland retail consultant Ruth Jackson said: “Interestingly, the findings show that the role of a retailer is evolving with more demand for home delivery and click-and-collect services. Customers now expect retailers to literally go the extra mile to meet their demands, meaning they need to extend supply chain capabilities and re-consider how they run their end-to-end operations.

“Many retailers are using analytical technology to report on historic sales and previous trends. But in this ever changing environment, a more pro-active approach is needed to understand what is likely to happen next. Taking a more forward-looking approach to predict shopping trends and understand the impact of decisions, will help many retailers to weather the storm ahead more effectively.

“It’s vital that they have the solutions in place to understand and predict the increasingly complex and changing nature of customer behaviour, so as to make the best real-time decisions about products, services and how to communicate with their customers.”

Source: talkingretail.com