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Consumer spend remains robust in spite of Brexit

By Vivian Hendriksz

22 Nov 2016

Business

London - UK retailers can breath a littler easier as the economical and political uncertainty following in the wake of Brexit seems to have had little effect on UK consumer sentiment.

82 percent of shoppers indicated the results of the National Referendum have had no impact whatsoever on their spending behaviour over the last six weeks, according to the latest results from retail research agency Retail Economics. 2 percent noted they were even less cautious with spend following the Brexit exit, while 16 percent were more cautious with their spending, although this caution is said to have been more noticeable with big-ticket items such as cars, kitchens and bathrooms.

In addition, 70 percent of consumers said their current appetite for spending was unaffected, regardless of what their expectations of the economy in the future was. Some 11 percent of consumers also added they had brought forward some discretionary spending in light of a price hike in the near future. "Retail sales are growing at the fastest rate since April 2002 according to the ONS, providing further evidence that shoppers are undeterred by the Brexit vote," commented Richard Lim, Chief Executive of Retail Economics.

"On the whole, people react to their own personal finances in terms of rising prices for the goods they buy, their job security and what happens to their wages. As of yet, not much has happened to affect their buying power or willingness to spend. Despite the gloomier outlook for the economy, shoppers are living for the moment and have put any anxiety over Brexit to the back of their minds. This will bode well for retailers as they approach the all-important Christmas period."

Image: FashionUnited