A study by Verdict Retail has found that more than half of consumers (51.5%) believe that a weak pound will lead to price rises over the next six months.
Consumers believe that the most significant price increases will be seen in terms of fuel and household utility bills, however there are also fears over food price inflation.
'Impending price rises have also had a detrimental effect on retail spending, as 48.0% of consumers expect to spend less on retail over the next six months,' Verdict Retail said in a statement.
While in December, shoppers were able to benefit from heavy discounting, Verdict Retail anticipates that prices will increase as import cost increases are realised.
“Consumer sentiment has been lifted by the festive period, however, this positive attitude by consumers is unlikely to last long as consumers plan to save rather than spend in stores," said Zoe Mills, Analyst at Verdict Retail. "The first half of the year is likely to be particularly hard for retailers, with almost half of consumers surveyed planning to spend less on retail over the next six months, compared to just over a third of consumers planning to spend less this time last year.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
