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In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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Nearly half (46%) of Britain’s independent retailers reported lower sales in the second quarter of 2025 compared with the same period last year, according to new figures from the British Independent Retailers Association (BIRA).

The decline was attributed to a squeeze on household budgets and falling consumer confidence as key factors. 

The figures were published in BIRA’s latest Heartbeat survey, which tracks trading performance across the sector. Conducted from July to August, the Q2 survey gathered responses from BIRA members and the Association of Cycle Traders (ACT).

While 45% of respondents said sales had improved compared with the first quarter of 2025, only 13.8% reported an increase on the same period last year. Q2 typically represents a quieter trading window than Q1, which includes the January sales period.

The cycling sector showed mixed results, while others pointed to external pressures, including disruption caused by the stock market reaction to US tariff announcements in April.

Retailers also raised concerns about industry-wide challenges, including excess stock and increased competition from new brands entering the UK market directly from China and Taiwan.

When asked about government priorities for the autumn statement, 47% of respondents identified business rates reform as their main concern. Other priorities included limiting rises to the national minimum wage, tackling cyber crime, and increased police funding.

Andrew Goodacre, chief executive of BIRA, said: “These findings paint a concerning picture of the challenges facing Britain’s independent retailers. With household budgets under pressure and business confidence fragile, our members are facing a perfect storm of rising costs and uncertain consumer demand.

“The government must recognise that independent retailers are the backbone of our high streets and take decisive action to reduce the amount retailers actually pay for business rates, especially as next year many thousands will pay more. Without this support, we risk losing the diverse, vibrant retail landscape that makes our communities special.”

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