Retailers are revealing greater optimism as the golden quarter approaches. With an improving economic outlook and rising consumer confidence, retailers await a stronger end to the calendar year. Crucially, this heralds a more positive tone in the UK market for many business owners considering M&A transactions, who had previously paused decisions, whilst awaiting better market sentiment.
Key themes across the retail landscape include:
- Omnichannel – physical retail
resurgence: As online-only retail declines, driven by
lower in-store return rates, reduced costs of returns, and the
halo-effect of storefront locations.
- Customer acquisition: How customers research
and shop for brands and products has evolved, accelerated by the
introduction and success of social media in-app shopping
functions.
- Conflicting consumer trends: Retailers face a
dilemma as customers demand ethical and eco-friendly apparel,
whilst concurrently ultra-fast fashion and value brands thrive in
the UK market.
- Unlocking AI benefits: AI enhances data-driven
performance through better inventory management, personalised
ecommerce experiences, dynamic outreach, and more precise demand
forecasting.
- Policy and regulation: New laws are being
introduced to protect shop workers from rising shoplifting, while
business rates and supply chain transparency are under scrutiny for
potential reforms.
- Joint venture, partnerships and collaboration: Brands and retailers are increasingly using this to expand into new regions and demographics by leveraging local expertise and combined brand power.
To learn more about the key M&A trends taking shape this year in the UK High-Street Market, read our latest paper.
Originally published 02 September 2024
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