Home / Knowledge / News / Retail / UK retail health deteriorated further in Q2 2019, says RTT

UK retail health deteriorated further in Q2 2019, says RTT

Jul '19
Pic: KPMG/Ipsos Retail Think Tank
Pic: KPMG/Ipsos Retail Think Tank
The UK retail health deteriorated more than expected in the second quarter of 2019, according to the KPMG/Ipsos Retail Think Tank (RTT). In its qualitative and quantitative assessment of demand, margins and costs, RTT pointed to low consumer demand, partly the result of cooler weather, and further margin pressure as the key drivers weighing down the sector.

The latest assessment sees the retail health index (RHI) score fall from 77 to 76, bringing overall health in-line with the lows witnessed during the so called ‘double-dip’ in the last quarter of 2012. The move marks the thirteenth consecutive quarter in which health has either declined or remained flat, with the think tank referring to this downward trend as the ‘slippery slope’ the industry has been facing for a prolonged period now. “Indeed, health hasn’t improved since the beginning of 2016,” RTT said on its website.

There is little hope of improvement looking ahead either, with the RTT predicting that health will decline a further point in the third quarter of 2019, bringing the RHI score to an all-time low of 75 if its predictions come to fruition. Think tank members noted consumer uncertainty in the face of a possible recession, as well as continued Brexit uncertainty as the key causes for concern for the industry.

“Speaking with retailers day in, day out, there’s no denying that they are facing some of the toughest trading conditions they’ve ever experienced. Looking at consumer demand in particular, the BRC-KPMG Retail Sales Monitor noted record low sales in both May and June this year.

“Trading is challenging both on the high street and online – and apparel is very much on the forefront of this battle at the moment. There are a number of issues impacting consumer confidence and retailers’ margins are under significant pressure. Online sales growth was recorded at just 5 per cent growth for the last few months, so it’s not just the high street experiencing the strain,” said James Sawley, RTT member and head of Retail & Leisure at HSBC.

“From an economic perspective, consumers should be feeling more confident and flush, in light of wage growth and low unemployment, but they are notably clawing back spend at the retail industry’s peril. Nielsen reported a fall in consumer confidence at the end of 2018 and there has certainly been a resetting of consumer spend, even within the grocery sector, since Easter this year. And, growth across grocery has been woefully low in recent weeks, even if you take the growth momentum of the discounters into account. While some of this might be attributed to the volatility of the British weather, in reality I believe retail as a whole faces some structural issues that may be amplified as we near closer to the next Brexit deadline in October,” said Mike Watkins, RTT member and head of Retailer and Business Insight at Nielsen. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Rahul Bhadani, Looksgud

Rahul Bhadani

Navigating through catalogues is a bit hasslesome

Zennure Danisman,

Zennure Danisman

Since its inception in 1953, Orta Anadolu has been weaving a denim...

Ronald Van Den Broek,

Ronald Van Den Broek

Headquartered in Japan, Mimaki Engineering Co. Ltd. manufactures and...

Neeraj Sharma,

Neeraj Sharma

Headquartered in Surat, Gujarat, Orange O supplies digital textile...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search