The UK’s retail performance has remained in growth territory despite consumers facing a number of increasing economic pressures, according to the latest Retail Distribution Review from Lloyds TSB Corporate Markets. The report, compiled by Lloyds TSB Corporate Markets’ Economics team, analyses the impact that inflation and employment growth are having on the retail distribution sector.
Jeavon Lolay, Senior Economist, Lloyds TSB Corporate Markets, said: “Retail distribution remains a key area of focus as companies review their balance sheets and look to realise more cost efficiencies. We predict that retail activity as a whole will continue to slow in the latter half of the year, reflecting lower household disposable incomes. However, performance will vary across different sectors and consumer borrowing may help to cushion the blow. Food and internet sales should remain solid, although large clothing retailers operating in a more highly competitive environment may see their margins shrink further.”