While the shift to the new retail paradigm is ongoing, there is renewed optimism that 2020 will bring improvements for both occupiers and consumers.
With the Conservatives securing a majority in the general election, bringing greater clarity on Brexit, the lifting of political uncertainty helped consumer confidence rise 3 points to -11 in December. This, combined with greater fiscal stimulus, low inflation and record high employment of 76.3%, should see consumer spending pick up over the year ahead.
Retail sales generally disappointed over the festive trading period, due to steep discounting and the late timing of Black Friday, which meant shoppers brought forward purchases, rather than boosting overall spending. According to Springboard, UK footfall declined 2.5% year-on-year in December, while retail sales grew by a meagre 0.3%. Online sales accounted for 19.2% of total retail sales in 2019, up from 18.0% in 2018.