Retail can respond positively to rising consumer confidence, says BHN VP

“2023 was a difficult year for a lot of businesses and consumers alike. But this rise in UK consumer confidence is a positive signal for the 2024 UK economy,” said Uprichard. “And like a lot of leaders in the retail industry, I am pleased to see it.

“This improvement likely comes from factors such as reduced national insurance, lower mortgage rates, and rising real wages, which create an increase in consumer’s disposable income.

“This uplift, coupled with the fastest-growing purchasing management index in seven months, brings about a newfound positivity in consumers’ personal finances – meaning that consumer spending is finally on the rise!

“This allows retailers to have a more positive outlook for 2024. Businesses will be able to tailor their marketing strategies, introduce new products, and enhance customer experiences across multiple channels to align with the anticipated increase in consumer spending.

However, Uprichard did temper the optimism with a hint of caution.

“I would encourage leaders to tread cautiously. Whilst these increases paint a promising future for 2024, 2023 peak sales indicate that retail is still bouncing back following a challenging couple of years.

“The index underscores the importance of adaptability and foresight, as potential challenges like supply chain restrictions and persistent inflation may influence consumer behaviour.

“I would encourage retailers to meet customers where they are shopping whether that’s online or instore, and across all channels and importantly, give them reasons to buy with you, through promotions, loyalty programmes, and added value.”