Brexit’s impact on retail
I’m sure you’re all as sick to the back teeth of this Brexit lark as I am. Regardless of how one voted in the referendum, I’m confident nobody wanted to see this total shambles. Our mighty nation is now an international embarrassment – we look like a Hugh Grant character, bumbling about and struggling to decide what to do or say.
But what impact has the slow movement of the umbilical cord chopping been having on the retail industry? Cataclysmic is the answer.
As a ‘seasoned’ recruiter I’ve seen no end of peaks & troughs over the years. I’ve observed recessions before they’re announced, because spending habits are a clear indicator of the health of the nation – and shoppers not spending, has an instant knock-on effect on recruitment decisions.
Postponing Britain’s split from Europe til Halloween (oh so apt!) will probably and hopefully deliver a fillip to the high street, and our ailing stores. Everything has been on ice since the start of the year, pending the exact way in which we exit. Scaremongering (or accurate forecasting – who knows!?) about what a hard Brexit could do to the country, and a general sense of Entering The Unknown has meant a total state of stalemate. No retail boardroom is signing off anything or anyone new, until the future is clearer. And who can blame them?
A delay til October will mean that at least there’s a little breathing space, and some movement can happen. So many redundancies in our industry have created a situation where we have a vast number of talented merchandisers at home, immediately available, itching to work (and – sadly – prepared to take significant drops in terms of level and salary). And – thanks to Brexit – without the usual number of vacancies to pick from. In many businesses, recruitment is currently on a needs-must basis, with many merchandisers effectively doing the job of two (or more) because of moratoriums on anyone new joining – our people are frazzled. And as such everybody seems to be job-hunting.
Since the referendum, the Brexit topic has made shoppers cautious, while they wonder what impact it will have on their own worlds. I could list all the businesses that have gone under since June 2016 but it’s just too depressing. How many of those casualties were inevitable and a result of the rise of ecom is another subject, but most retailers I speak to are agreed it’s due to Brexit (thanks David Cameron – quite a legacy you left behind you).
This October plan should encourage shoppers to get out there and get the tills ringing. As will the sun coming out and the desire to purchase from SS19 collections (in addition to the annual Pimms, halloumi & Weber sales spikes). But research shows we’re still wary of making big-ticket purchases – again, we all serve as a barometer for the economic mood of the nation. It really is for us to shop our way out of any threatened recession.
The impact of the political turmoil is vast. But it is time for our retailers to be bold. Make those decisions. Sign on the dotted line. And if that means prioritising the clicks and closure of some bricks, then so be it – as long as the sales are coming in. The longer businesses postpone investment, the greater risk of denting the economy – and people’s jobs. Any hint of recession and fear of unemployment stops spending in its tracks. A self-fulfilling prophecy. So the success or failure of our industry over the coming months truly does lie in our hands.