New research shows no deal Brexit could cost retailers £7.8bn
Research published this week has suggested that the nation’s retailers could face a staggering £7.8bn bill from a no deal Brexit.
The figures come from Squire Patton Boggs, an analyst and law firm which studied the impact of a no deal Brexit. It says the food and drink industry will be the hardest hit, with tariffs of up to 80% to be levied on imported goods.
With three-quarters of the country’s food and drink imported from the European Union, a failure to agree a trade deal could see many retailers facing huge additional costs. Additional tariffs on meat and dairy products could total around £6bn with clothing and footwear firms expected to pay up to £1.1bn in additional charges for EU imports.
US retail sales fall for third month
US retailers collectively posted a 0.1% decline in February – the third straight month that sales have fallen, despite increasing employment and greater spending power fuelled by tax cuts and raises. The shopping decline has been felt across many sectors – with the Wall Street Journal reporting falls in sales of automobiles, groceries, furniture, electronics and health products.
Read the full story here: https://www.wsj.com/articles/u-s-retail-sales-fall-for-third-straight-month-1521030712
Will House of Fraser be the next high street victim?
There are reports emerging that department store, House of Fraser could be the next victim of the retail bust after rumours that talks to secure £40million in emergency funding are on the verge of collapse. Numerous outlets are reporting that the firm’s negotiations with investment firm Alteri are set to amount to nothing due to the store’s existing debts.
House of Fraser has 59 stores and employs 6000 staff but is thought to have used many of its assets as collateral against existing loans – industry speculation is that it is around £400million in debt due to bank loans and bonds. The news comes as a number of other high street retailers face an uphill battle to survive. Toys R Us has already gone into administration, electronics specialist Maplin shuttered last month, Poundstretcher has issued a profit warning and Next has revealed an 8% profit slump following its most difficult trading period in a quarter of a century.
Read the full story on House of Fraser here: https://www.retailgazette.co.uk/blog/2018/03/fears-grow-house-frasers-future-emergency-fundraising-talks-collapse/
Google launches cost per sale Shopping Actions
Google has launched a new cost-per-sale model, Shopping Actions across search and Google Assistant as part of a bid to make it easier for consumers to shop products from Google Assistant. The Shopping Actions program is widely considered to be a response to Amazon, which leads the pack in product discovery. Google says advertisers can use its new Shopping Actions to leverage its AI technology, make it easier for those conducting voice searches to buy, make shopping easier across platforms and develop deeper loyalty.
Read the full announcement from Google here: https://adwords.googleblog.com/2018/03/shopping-actions.html