The picture for the retail sector in our country is not exactly rosy. ABN Amro conducted research and came to the conclusion that 2023 will be a difficult year due to rising rents and energy costs and staff shortages. “This applies to the entire industry, but the differences between industries are huge.”
The sector is expected to contract by 0.5%, says Retail and Leisure sector economist Gerarda Westerhuis of ABN Amro. “This is mainly due to rising costs in most branches of this industry, but it is particularly evident in furniture stores.”
They have already been through a difficult time and are also facing a difficult time, says Westerhuis. ‘Furniture is seen as non-essential, which is why it’s the first to be cut. And during the corona period, many people have already spent money on it.’
Butcher on the corner
Similar signals can be seen from butchers and bakers, Westerhuis notes. “When purchasing power is low, people are more likely to go to the supermarket or even the catering trade than to the butcher or baker.” Purchasing power will increase next year thanks to government support measures, but it will remain low and will also differ greatly by household, says Westerhuis.
Bright spots
Falling raw material and container prices, plus declining shortages of materials such as wood chips, provide small bright spots in the research. It may be a while before entrepreneurs can also benefit, says Westerhuis: “It will take a while because retail is at the end of the chain.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
