British Discount Supermarkets Benefit From Falling Consumer Confidence

according to

UK consumer confidence index of research group GfK, the UK consumer confidence index dropped 11 points to -12 in July (2016), the largest decline in more than 26 years.

Britain

The British Council of Shopping Centres (BCSC) and the real estate group Cushman & Wakefield estimated that although British consumers are likely to reduce their expenses, the discount supermarket Aldi and Lidl may benefit a lot.

Joe Staton, head of GfK market dynamics, believes that the UK's current consumer confidence index is only slightly below the long-term average of -11 since 2011, and the future trend still depends on whether Britain will enter a new phase of destructive economic uncertainty or restore confidence growth.

The BCSC report points out that the consumer confidence index should be assessed in the light of the overall economic situation. The impact of any UK referendum will be apparent in the next 2017 years.

Britain first achieved a positive growth in consumer confidence in 2015, and the index far exceeded the -39 low in July 2008.

Meanwhile,

The forecast for sales growth will reach 4.4% in 2016 and slow down to 2% in 2017.

BCSC and Cushman & Wakefield group report pointed out that the price of imported food may rise rapidly due to the impact of the pound weakness, so retailers from the United Kingdom are likely to surpass their peers in the short term to gain advantage.

Edward Cooke, chief executive of BCSC, said retail real estate is still attractive because individual investors are still seeking new ways to attract customers.

Besides, high employment rate, real wage growth and economic growth also push the retail industry to maintain a strong trend.

BCSC chairman Mark Bourgeois also believes that British consumers are more concerned about summer discounts than the political turmoil facing Britain.