East Mids retailers ready to ward off ‘perfect storm’, says Barclays chief
Consumers have become more careful with how they spend their money, but there is little to suggest that retail is entering a “perfect storm”, according to one senior banking professional.
Speaking at an exclusive TheBusinessDesk.com round table event, Ian Gilmartin, head of industry – retail and wholesale, said that while talk of a ‘perfect storm’ was emanating from some industry analysts, he had a “more polite view” on the future of retail.
Gilmartin said: “There can be no doubt that consumers have changed their habits. They are much more in tune with saving cash and being careful with how they spend their money, and people are being little and often – rather than, for example, doing a big weekly or monthly shop.
“Many retailers are under significant pressures because of their real estate portfolios – they simply have too many stores and they’re struggling to fill them with products. What we’re seeing now is that a consumer has to have a real reason to go out and buy something in a shop.”
However, Gilmartin is optimistic for the High Street. He said: “It might shock some, but only 15% of shopping is done online in the UK – the High Street still has a significant place, and shoppers still love its vibrancy.”
Gilmartin said that Brexit and a possible skills shortage would probably impact the retail sector, as would any trading tarrifs imposed on goods coming to the UK.
He added: “I don’t share the view that the retail industry is set to enter a ‘perfect storm’ brought on by Brexit and any interest rate rise. I have a more polite view; retailers have been through tough times recently – and the impact of Brexit won’t be as immediate as the Crash of 2007. Retail is full of great people, and, as a bank, we’re here to help people.”
