30 Apr 2022
How Can Retail Navigate The Cost Of Living Crisis
There is no escaping the fact that we are in the midst of the biggest cost of living crisis in a generation, with rising inflation and energy prices putting the squeeze on household finances by around £1,000 this year alone.
Inflation is set to rise even further, February’s figure has already reached 6.2%, marking its highest point in thirty years. In Chancellor Rishi Sunak’s spring statement he announced measures to try and alleviate the situation for households, but the charge was they won’t be nearly enough to alleviate such a unique situation.
While demand for products remains high and footfall continues to increase towards pre-pandemic levels, inflation, energy bills, and rising taxes have already begun taking their toll on consumer confidence. As of this month the GfK Consumer Confidence Index is down to -31, its lowest point since late 2020. Tellingly, the most significant drops come from the outlooks for personal finances and the wider economic situation, alongside the major purchase index, indicating that consumers are already concerned about how much they have to spend.
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Photo by Karolina Grabowska