OUTLOOK

Last year’s gains have turned out to be this year’s pain.  Retailers and brands were challenged in Q1 to beat 2022’s exceptionally strong sales. 

THE SITUATION  in JULY 

With interest rates stubbornly set at levels well above last year – and Central banks warning of further rate hikes to come – retailers are seeing the rewards of their aggressive action to get rid of old stock and to place new orders very judiciously.  

• Brands are blaming inflation for hurting sales saying that higher costs are forcing them to push up retail prices – which in turn is hurting consumer spending.  For example, N Brown (UK) said the average cost per item rose 12%.  Primark also reported that they raised prices on some items.