Footfall and Hedges
The clock is ticking on retail pricing. With many retailers buying stock in dollars, the weak pound will start to put margins under pressure. One option for retailers is to pass on the increased cost to customers. However, with footfall down (2.8%) and confidence down (index fell to -9) the ability to achieve this remains uncertain. However, retail landlords shouldn’t be concerned yet – consumer confidence is still above the long term average, retailer failure rates are at an all-time low, and most big retailers have hedged their currency positions well into next year.