Latest news with #RetailEconomics
Yahoo
07-08-2025
- Business
- Yahoo
76% of UK Retailers Probing New Export Markets Due to Tariff Turbulence
Fashion firms across the globe are feeling the aftershocks of President Donald Trump's recent tariff announcements. In the United Kingdom, the majority of retailers say the trade policy shifts have shaken up their plans for the future. A study conducted by ESW and Retail Economics based on answers from 200 non-food U.K. retailers (many of which are focused on exports) revealed that the majority (76 percent) are now diversifying away from the United States as an end market. More from Sourcing Journal Trump Threatens EU With 35% Tariffs if Trade Bloc Forgoes $600B US Investment One in Five UK Consumers May Stop Shopping Online Over Cyberattacks EU Delays Duties on US, While India and China Negotiations are Snarled by Russia Conflict The U.S. represents the biggest non-European retail market for most exporters, and larger retailers have been 'radically re-drawing their global growth playbooks as protectionist trade policies upend decades-old export patterns.' This is less true for smaller retailers, 71 percent of which said they've been left without a discernible path forward by the shifts in the U.S.-U.K. trade relationship. Typically less resourced than their larger counterparts, small retailers will feel the impacts of America's new 10-percent baseline tariff deeply. That change is expected to increase average duties on non-food exports from 2.3 percent to a whopping 17.2 percent. That's a hard pill to swallow for any retailer, regardless of size. And if the tariffs increase beyond 22 percent in the future, more than half of all respondents said they would deem trade with the U.S. 'commercially unviable.' 'U.K. retailers are undergoing a seismic shift in their export strategies,' said Jon Sheard, vice president of Northern Europe at ESW. 'Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth.' According to the groups' reporting, the export relationship with the Middle East and North Africa has blossomed in recent years, growing by 34 percent between 2021 and 2024. The United Arab Emirates (UAE) now represents to fastest-growing export market for U.K. retailers outside of the European Union, though non-EU countries in Western Europe have seen notable growth (15 percent), along with Asia-Pacific (6 percent). According to CEO of Retail Economics Richard Lim, 'Tariff volatility is reshaping the global retail landscape.' Lim believes retailers can no longer rely chiefly on the U.S. as an export market, as they have in the past. 'Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand,' he said. 'Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localize, and seize emerging trade opportunities.' Retailers are quickly catching on to this new reality. The report showed that 77 percent view global brand building as a strategic imperative, and two-thirds are even willing to sacrifice some profit margin in favor of export growth. But there are significant challenges to overcome before these new international growth strategies can reach their full potential. In the near-term, the biggest hurdles include logistics costs, operational complexity and regulatory uncertainty. As they gear up for an evolution in the way that they export, many are looking for turnkey solutions that could help them handle logistics coordination, payments, taxes, customs, tariffs and fees, local marketing and positioning in front of new audiences. U.K. retailers believe they have a distinctive advantage that will give them a leg up, though: 40 percent said that 'Made in the U.K.' labeling and messaging carries a perception of premium quality because of the country's modernized safety and regulatory standards. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
04-08-2025
- Business
- Fashion United
UK retailers to 'actively diversify' beyond the US due to tariff uncertainty
The US is historically the UK's largest non-European Union retail market, but with the ongoing uncertainty surrounding tariffs imposed by President Trump's administration, 76 percent of UK exporters are now actively looking to diversify beyond the US market. New research from ESW, which delivers international ecommerce solutions, and research consultancy Retail Economics, found that with the US's new baseline 10 percent tariff in 2025 is set to increase average duties on UK non-food exports from 2.3 to 17.2 percent, UK retailers and businesses are having to re-draw global growth playbooks and 'reevaluate long-held assumptions about US viability'. Findings of the research undertaken by Retail Economics in Q2 2025 of 200 businesses across UK non-food retail, focused on exporters, and economic modelling, found that more than half of UK exporters would find trade to the US commercially unviable if tariffs exceed 22 percent, while 77 percent of retailers view global brand-building as 'a strategic imperative'. Two-thirds added that they are willing to sacrifice profit margin for export growth, noting that the biggest barriers to international expansion include logistics costs, operational complexity, and regulatory uncertainty. While 71 percent of small UK retailers admit they were unprepared for US trade shocks, and the 'stark operational gap could hit margins overnight'. Middle East and Asia-Pacific emerge as breakout growth corridors for UK businesses amid tariff volatility Jon Sheard, vice president of Northern Europe at ESW, said in a statement: 'UK retailers are undergoing a seismic shift in their export strategies. Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth.' According to the 'Rethinking Reach: How UK Retailers Are Turning Trade Pressure into Global Advantage' report, exports to the Middle East and North Africa increased by 34 percent between 2021 and 2024, with the UAE now the fastest-growing UK export market outside the EU. Other growth regions include non-EU Western Europe, which is up 15 percent and Asia-Pacific, up 6 percent. The report also adds that UK retailers retain a distinctive advantage, with 40 percent of respondents noting that the 'Made in UK' label delivers a premium perception overseas due to the country's elevated safety and regulatory standards. Richard Lim, chief executive of Retail Economics, added: 'Tariff volatility is reshaping the global retail landscape. Retailers can no longer rely solely on traditional export markets, like the US. Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand. 'Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localise, and seize emerging trade opportunities.'
Business Wire
04-08-2025
- Business
- Business Wire
UK Retailers React to Tariff Uncertainty With 76% of Exporters Diversifying Beyond the US Market, New Study Finds
LONDON--(BUSINESS WIRE)--New research from ESW and Retail Economics reveals that 76% of UK exporters are now actively diversifying beyond the US, historically the UK's largest non-EU retail market. Larger UK retailers are radically re-drawing their global growth playbooks as protectionist trade policies upend decades-old export patterns. However, 71% of small UK retailers admit they have no formal plan for sudden trade-policy shocks, a stark operational gap that could hit margins overnight. The report, ' Rethinking Reach: How UK Retailers Are Turning Trade Pressure into Global Advantage,' highlights the factors driving the urgency of this pivotal moment for British retail. The US's new baseline 10% tariff in 2025 is set to increase average duties on UK non-food exports from 2.3% to 17.2%, forcing retailers to reevaluate long-held assumptions about US viability. More than half of UK exporters would find trade to the US commercially unviable if tariffs exceed 22%. 'UK retailers are undergoing a seismic shift in their export strategies,' said Jon Sheard, VP of Northern Europe at ESW. 'Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth.' According to the report, exports to the Middle East and North Africa surged 34% between 2021 and 2024, with the UAE now the fastest-growing UK export market outside the EU. Other growth regions include Non-EU Western Europe (+15%) and Asia-Pacific (+6%). 'Tariff volatility is reshaping the global retail landscape,' said Richard Lim, CEO of Retail Economics. 'Retailers can no longer rely solely on traditional export markets like the US. Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand. Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localise, and seize emerging trade opportunities.' The report also finds: 77% of retailers view global brand-building as a strategic imperative. Two-thirds are willing to sacrifice profit margin for export growth. The biggest barriers to international expansion include logistics costs, operational complexity, and regulatory uncertainty. UK retailers retain a distinctive advantage, with 40% of respondents noting that the 'Made in UK' label delivers a premium perception overseas due to the country's elevated safety and regulatory standards. Many retailers are increasingly turning to strategic partners that offer fast turnkey market entry to help mitigate the challenges new market expansion presents. This can include services such as handling payments, taxes, and logistics; local cultural positioning and trust-building; targeted demand generation and localisation; and expertise in warehousing, shipping, and customs. Methodology Research was undertaken by Retail Economics in Q2 2025. This includes surveys of 200 businesses across UK non-food retail, focused on exporters, and economic modelling – drawing on annual national statistics and proprietary data to classify trade flows by retail category, region and country. Download the full report here. About ESW ESW makes worldwide ecommerce powerful and simple by partnering with the world's best-loved brands and retailers to deliver international ecommerce solutions that reduce cross-border complexity. By localising the online shopping experience, ESW creates moments that matter between brands and consumers, drives global revenue, and helps build brand loyalty. ESW addresses the complexities of international markets with tailored solutions, including frictionless checkout, fast and reliable shipping and returns, and reduced compliance and regulatory risk. ESW enables clients to navigate local markets confidently and drive long-term profitability through its unique, genuine partnership approach. With offices in New York, Dublin, Madrid, and Singapore, ESW helps the world's premier and most ambitious brands achieve growth and profitability in over 200 international markets. ESW is the only international commerce solution that is MACH certified. About Retail Economics Retail Economics is an independent economic research consultancy focused on the consumer and retail industry. We analyse the complex retail economic landscape and draw out actionable insight for our clients. Leveraging our own proprietary retail data and applying rigorous economic analysis, we transform information into points of action. Our service provides unbiased research and analysis on the key economic and social drivers behind the retail sector, helping to inform critical business decisions, giving you a competitive edge through deeper insights.
Associated Press
04-08-2025
- Business
- Associated Press
UK Retailers React to Tariff Uncertainty With 76% of Exporters Diversifying Beyond the US Market, New Study Finds
LONDON--(BUSINESS WIRE)--Aug 4, 2025-- New research from ESW and Retail Economics reveals that 76% of UK exporters are now actively diversifying beyond the US, historically the UK's largest non-EU retail market. Larger UK retailers are radically re-drawing their global growth playbooks as protectionist trade policies upend decades-old export patterns. However, 71% of small UK retailers admit they have no formal plan for sudden trade-policy shocks, a stark operational gap that could hit margins overnight. The report, ' Rethinking Reach: How UK Retailers Are Turning Trade Pressure into Global Advantage,' highlights the factors driving the urgency of this pivotal moment for British retail. The US's new baseline 10% tariff in 2025 is set to increase average duties on UK non-food exports from 2.3% to 17.2%, forcing retailers to reevaluate long-held assumptions about US viability. More than half of UK exporters would find trade to the US commercially unviable if tariffs exceed 22%. 'UK retailers are undergoing a seismic shift in their export strategies,' said Jon Sheard, VP of Northern Europe at ESW. 'Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth.' According to the report, exports to the Middle East and North Africa surged 34% between 2021 and 2024, with the UAE now the fastest-growing UK export market outside the EU. Other growth regions include Non-EU Western Europe (+15%) and Asia-Pacific (+6%). 'Tariff volatility is reshaping the global retail landscape,' said Richard Lim, CEO of Retail Economics. 'Retailers can no longer rely solely on traditional export markets like the US. Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand. Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localise, and seize emerging trade opportunities.' The report also finds: Methodology Research was undertaken by Retail Economics in Q2 2025. This includes surveys of 200 businesses across UK non-food retail, focused on exporters, and economic modelling – drawing on annual national statistics and proprietary data to classify trade flows by retail category, region and country. Download the full report here. About ESW ESW makes worldwide ecommerce powerful and simple by partnering with the world's best-loved brands and retailers to deliver international ecommerce solutions that reduce cross-border complexity. By localising the online shopping experience, ESW creates moments that matter between brands and consumers, drives global revenue, and helps build brand loyalty. ESW addresses the complexities of international markets with tailored solutions, including frictionless checkout, fast and reliable shipping and returns, and reduced compliance and regulatory risk. ESW enables clients to navigate local markets confidently and drive long-term profitability through its unique, genuine partnership approach. With offices in New York, Dublin, Madrid, and Singapore, ESW helps the world's premier and most ambitious brands achieve growth and profitability in over 200 international markets. ESW is the only international commerce solution that is MACH certified. About Retail Economics Retail Economics is an independent economic research consultancy focused on the consumer and retail industry. We analyse the complex retail economic landscape and draw out actionable insight for our clients. Leveraging our own proprietary retail data and applying rigorous economic analysis, we transform information into points of action. Our service provides unbiased research and analysis on the key economic and social drivers behind the retail sector, helping to inform critical business decisions, giving you a competitive edge through deeper insights. View source version on CONTACT: Media Contact Berns Communications Group Danielle Poggi [email protected] KEYWORD: EUROPE IRELAND UNITED KINGDOM INDUSTRY KEYWORD: SUPPLY CHAIN MANAGEMENT PAYMENTS ONLINE RETAIL RETAIL TECHNOLOGY SOFTWARE ELECTRONIC COMMERCE SOURCE: ESW Copyright Business Wire 2025. PUB: 08/04/2025 04:00 AM/DISC: 08/04/2025 04:00 AM
Business Times
13-07-2025
- Business
- Business Times
Labour fails to boost UK living standards after one year on job
[LONDON] UK living standards are no higher than when Labour swept to power a year ago, highlighting the problems piling up for Prime Minister Keir Starmer as he struggles to contain the rise of Nigel Farage's populist Reform UK party. Discretionary incomes tumbled 4.2 per cent in April after a wave of bill increases and tax hikes, and failed to improve in May – the worst two months for households since the spring of 2022 when Russia's invasion of Ukraine sent energy prices rocketing, according to Retail Economics. In total, they have fallen 7.5 per cent this year to levels seen just after Labour won a landslide victory in July last year, with the least well off hit hardest. The bleak findings come as separate analysis shows the number of Britons with second jobs jumping to a record high and one in six workers struggling to pay their monthly bills. The figures help to explain why political discontent is brewing in Britain – despite Starmer's claim that wages growing faster than prices is a sign of things improving. Labour has been overtaken in opinion polls by Reform UK, which has surged in support as it promises tax cuts and hand outs to lower-income Britons. With pay growth running at around 5 per cent, well above the 3.4 per cent rate of inflation, Starmer and Chancellor of the Exchequer Rachel Reeves say they are delivering on an election promise to make working people better off. But Retail Economics' data covers changes in tax and some bills not captured by official data, suggesting that the real picture for households is much worse. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Disposable incomes recovered strongly from the spring of 2023 after being hit by soaring energy and food bills that pushed inflation to a peak of 11.1 per cent. However, 'awful April' this year delivered a fresh blow as food prices jumped and a raft of regulated costs, from local authority taxes and rail fares to energy and water bills, shot up. 'These unavoidable outgoings hit lower-income households the hardest and offset recent earnings gains,' said Nicholas Found, head of commercial content at Retail Economics. For the bottom 40 per cent of households, incomes remain below 2019 levels despite a nearly 7 per cent increase to the minimum wage that took effect in April. It suggests workers could keep pushing for higher wages, maintaining pay growth above the Bank of England's comfort levels despite a rapid deterioration in the labour market in recent months. While a fresh uptick in inflation in 2025 is being driven by one-off factors, policymakers are on guard against 'second-round' effects and have signalled a 'gradual' approach to cutting interest rates. The deterioration in living standards also helps explain ongoing consumer caution even though wages are growing strongly. Lower-income households spend most of their earnings on essentials, leaving them less to spend in shops and restaurants, while the richest are saving more of their spare cash. Retail sales fell the most since 2023 in May, contributing to another month of economic contraction. A survey by Lancaster University's Work Foundation found that one in six UK workers said they are struggling to pay their bills each month. Some four in 10 say they have little income left for savings or holidays, and less than half believe wage growth is keeping up with the cost of living. It said that the squeeze is forcing many Britons to seek more work, particularly men. Its analysis of official data for the three months through April showed the number of people with second jobs jumping by 10 per cent compared with a year ago to record highs. 'Financial pressures are pushing people to work extra hours or find additional sources of income, often through apps that make it easy to pick up extra work but this can lead to unhealthy workloads,' said Alice Martin, head of research at the think tank. 'We are seeing similar trends in other countries such as the US.' Frozen income-tax thresholds are also eroding living standards by dragging more workers into higher tax bands, and Starmer has refused to rule out extending the freeze as his government faces pressure to boost tax revenue after U-turns on billions of pounds of welfare cuts left Reeves with a growing budget hole to fill. The policy, introduced by the former Conservative government, is due to end 2028. The Resolution Foundation estimates that fiscal drag would completely erase a 2.5% wage boost in real terms for those just above the tax thresholds over the next three years. Some could even see a drop in real incomes once bills for council tax, a property-based local authority levy, are added to the calculation, the think tank added. BLOOMBERG
