The health of retail in the UK saw marginal signs of improvement in Q1, but not at as strong a rate as other consumer services, according to the KPMG/Ipsos Retail Think Tank (RTT).
• The health of the UK retail market improved by one index point after a disappointing end to 2014, with consumer confidence rising in line with higher wages and greater economic stability.
• The uplift in retail health was tempered both by the impact that Black Friday had on the traditional January sales and also by price deflation.
• Consumers and retailers in Q1 were unaffected by the uncertainty surrounding the general election, a trend that will continue into Q2.
• Retail health in Q1 driven by higher levels of demand to continue in Q2.
• Although confidence is higher, savings from lower energy and petrol prices appear to be being spent on experiential services rather than on consumer goods.
• Hangover from Black Friday could spell the beginning of...