Talking Retail Grocery and product news for independent retailers
In its quarterly Viewpoint report, the IGD argues that the UK recovery is “K-shaped”, meaning that different parts of the economy will diverge and recover at different rates.
Retailers will need to continue to serve a hybrid working from home and the office model, creating both challenges and opportunities, says the report.
Naomi Kissman, strategy and corporate affairs director at the IGD, said: “Shopper confidence in the UK is relatively strong, driving economic recovery.
“Rapid spread of the Delta variant and delaying the easing of restrictions is not thought to have presented significant new economic risk, but COVID-19 remains a major uncertainty.
“Other challenges lie ahead as the UK navigates a tightening labour market and implementation of new border measures for goods imported from the EU.
“With so many downside risks in play, including COVID-19, businesses should not expect a smooth, straight recovery.
“There are likely to be many bumps on the way, especially if new viral variants continue to appear.
“Long-term planning will be difficult for a while, so businesses will need to stay agile.”
New measures on the environment and health are likely to be crucial for retailers, added the report, with “far reaching consequences for the food and consumer goods industry”.
