Matt Clark, EMEA Leader (Retail) and Partner & Managing Director at AlixPartners, comments on BRC-Sensormatic IQ Footfall Monitor statistics

“The latest BRC Shop Price Index, with prices down 0.6% year-on-year but rising from October’s 0.8% drop, underscores the complex dynamics retailers are currently grappling with. The industry is facing mounting cost pressures due to the recent budget, which has introduced increases in business rates, wage hikes, and levies—pressures that will only intensify in 2025.

“While many will pass costs on to consumers, the most efficient players will seize the opportunity to drive market share by absorbing more costs than competitors. To remain competitive, managing supplier price hikes, adjusting product assortments, and automating processes will be critical.

“With cautious consumers tightening their belts and focusing on essentials, retailers must adjust their strategies to match spending patterns, driving spending on big-ticket items and capitalising on boosts like wage increases.

“Whilst wage increases aren’t ‘short-lived' themselves, promotions targeting beneficiaries of National Living Wage rises could unlock some short-term gains due to temporary increases in perceived discretionary spend. However, this effect is likely to wane as broader economic pressures mount. Encouraging larger purchases during this fleeting window—on items like home improvements, electronics, or holidays—will also be pivotal before sentiment turns more cautious.

“Seasonal promotions like Black Friday remain vital but increasingly tricky, as both retailers and shoppers engage in a strategic tug-of-war over discounts. Consumers are holding out for the genuine pre-Christmas sales that retailers will ultimately offer, creating a high-stakes game of who will blink first. In this tougher, value-driven market, retailers who adapt quickly to these challenges will emerge stronger.”

For further information, please contact Matt Clark, EMEA Head of our Retail Practice.