Call us

Consumers start to feel the "pinch"

Posted by: Laura Morroll

The great British summer coming early (momentarily) provided a welcome boost to retailers in April. However, the May BRC figures paint a different picture with a 0.4% decrease on like-for-like sales.

Helen Dickinson OBE, Chief Executive, British Retail Consortium said: 

After the pick-up in sales over Easter, consumer spending slowed again in May resulting in almost flat growth on the previous year. 

Overall, May’s sales slowdown is indicative of a longer term trend of a decline in consumer spending power. As household budgets become increasingly squeezed by inflation, predominantly in the non-retail part of the consumer basket, it’s vital that the next Government helps retailers keep prices low for ordinary shoppers.

In light of the pressure on retail prices, retailers can’t sit still and need to look at both efficiency and strategic levers within their control to manage their cost base so that margins don’t get squeezed. Efficiency levers improve the flow of information leading to accurate planning, efficient use of resources and minimise non-value added tasks. Similarly, strategic choice levers relate to a retailer’s proposition strategy and how they choose to compete or differentiate themselves in the market. 

Read our recent insight about understanding and managing your Cost-to Serve® here.

Laura Morroll is an MBA graduate with a passion for retailLaura began her career in retail operations with Decathlon and Nike, then into Buying and Merchandising with Nike, The Works and Claire’s accessories. In consulting Laura has led a number of end-to-end sourcing, speed to market, buying and merchandising process optimisation, DC, and network projects.


Email Laura

27 June / 2017

Supply chain challenges - cost reduction remains a high priority

Understanding challenges and balancing supply chain priorities is the key to suc...

Blog Entry Page

30 May / 2017

Where does the money go?

Understanding and managing the apparel Cost-to Serve®


23 May / 2017

Segmented supply chain networks: the next wave of End-to-End supply chain optimisation

The days of the ‘one speed’ supply chain are long gone. The world’s supply chain...


16 May / 2017

What’s driving sourcing trends in apparel?

Faced with the never ending challenge of maintaining or increasing overall profi...


23 March / 2017

Consumer Packaged goods report 2017

Blog: Consumer Packaged goods report - how manufacturers are meeting the challen...

Blog Entry Page

14 March / 2017

LCP Consulting joins BearingPoint

LCP Consulting, the leading international specialist consultancy in customer-dri...

News article