KBzine: the original kitchen and bathroom industry e-news - since 2002
30th June 2020
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Retailers are worried about a number of challenges they're currently facing - and things don't look as if they're going to improve for some time, with the uncertainty created by the general election and the 'will we/won't we - and if we do, how?' regarding Brexit. Add to that the frustration caused by the many accusations of dirty dealings being flung around like the contents of a food processor without its lid, and it's not surprising that everyone's so unhappy, is it?
New research released today by Duologi, which provides bespoke finance solutions for retailers, reveals that 35% of smaller retailers in the home and DIY sectors cite the continued uncertainty over Brexit as being the biggest challenge they face, with 29% saying that they feel unprepared for Brexit - if, of course, it goes ahead!
More than 21% fear that bigger players such as Amazon will steal their customers, as such companies are able to offer lower prices and enjoy greater visibility online and are likely to fare better through Brexit financially than their smaller counterparts.
Only 8% believe that the decline of the High Street will be the hardest hurdle to overcome in the coming year, as its well documented demise continues, while 10% believe meeting customers' needs could be a challenge, as members of the EU may be able to offer more competitive prices and products.
"With political uncertainty continuing into the new year, SME home and DIY retailers are still unclear on how this will affect them and how they can prepare," says Duologi. "Despite additional resources being made available ahead of an exit from the EU, deadline extensions scupper existing plans and safeguards, putting small home and DIY businesses in a difficult position. The economic uncertainty also fuels further consumer hesitancy when it comes to spending on significant purchases, as they are unclear on what the immediate impact of an EU exit means for them."
Duologi quite rightly adds that smaller retailers will also be troubled by the fact that the bigger players are generally able to undercut them price-wise, while also taking advantage of a strong online presence; reaching a larger number of customers than smaller retailers.
Oh for a crystal ball to be able to see now, how things will stand a year from now! Let's hope that when that time comes, we can look back and realise that we didn't need to worry quite so much after all...
16th November 2019