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PRIVACY
Economic Development

Brexit will likely add to problems on our high street

A retail expert gives his view on the potential impact of Brexit

Britain's exit from the European Union will likely add to a myriad of problems retailers are already facing on the high street.

That is the view of an expert who cited the impact of lower consumer confidence and buying habit changes as factors behind the demise of well-known firms, including Toys R Us, in the last few years.

More firms are now pointing to the uncertainty caused by Brexit - still scheduled for October 31 at the time of writing - for many of their problems.

Now, Nelson Blackley, a retail research associate at the Nottingham Business School, believes the "Brexit impact" could include a continued low consumer confidence, cost increases for retailers and a possible labour shortage.

Mr Blackley said: "The huge political uncertainty in the º£½ÇÊÓÆµ since the Brexit Referendum in 2016 has led to a dampening of consumer confidence and this will continue as and when - and how - the º£½ÇÊÓÆµ exits the EU.

"The value of º£½ÇÊÓÆµ retail sales fell 1.3 percent in September 2019, compared with the same month last year, down from a 0.7 per cent expansion 12 months ago.

"According to the British Retail Consortium and KPMG, this was the worst September since the figures were first collected by them back in 1995.

"The independent º£½ÇÊÓÆµ retail consultancy, Retail Economics, have also recently reported that many consumers said that they are likely to be more cautious with their discretionary spending in the final three months of this year."