UK Retail Sector Update – March 2024

The retail sector continues to be hampered by the dip into recession, labour shortages and low consumer confidence.

Tokio Marine HCC’s retail sector report analyses the ongoing problems faced by the industry.

Retail sales in the UK followed a downwards trend throughout 2023 which was reflected in all the main sectors as retailers curtailed spending over the year to protect their cash positions.

Investment was reserved for maintenance, warehouse and store automation whilst spending on new stores was limited.

Increasing competition and the cost-of-living crisis led to a mixed festive period across the sector. Whilst some businesses managed to convince consumers to spend despite the ongoing pressure on household finances, many relied increasingly upon heavy, promotional discounting and reported disappointing results.

Despite a rebound in retail sales in January, the 2024 outlook is clouded with insolvencies in the sector continuing to increase and already above pre-Covid levels.

With uncertainty throughout the UK business landscape, it essential to have appropriate protection in place in the event that one of your debtors enters insolvency.

Credit Insurance can protect your business from the impact of sustaining a bad debt and give you peace of mind.

You can read the full report from Tokio Marine HCC here.