Retailers enjoy 0.5% summer sales upswing but spending outlook darkening

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However, this positivity could soon shift if inflation continues to run hot and interest rates remain elevated. With concerns around potential Autumn Budget tax hikes and the UK job market, many households may decide to rein in discretionary spending in the lead-up to the vital festive trading period.

In this environment, retailers should strengthen their resilience. Careful planning, lowering supply-chain and operational costs, and implementing robust FX hedging strategies can help safeguard margins and maintain flexibility to adapt quickly to shifting demand and market conditions.

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