How's the retail and hospitality sector?

We work with all manner of independent retail businesses, both online and with physical shops, and it's a mixed picture. Performance seems to depend heavily on location and product type. While some businesses are showing signs of improvement, the overall trend is concerning. We've seen a decline in online and in-store sales compared to last year. Even market sellers, typically known for resilience, are experiencing a sales drop of around 30%. While the economic climate undoubtedly plays a role, the emergence of Temu is a significant factor. Temu's ultra-low prices are enticing consumers to "spend like a billionaire," as they market themselves, offering little incentive to shop locally. This raises serious concerns about the long-term health of our high streets. While Amazon's impact on retail was substantial, Temu seems to be a whole new level of disruption. It's crucial to address this issue before it causes widespread damage to small businesses and the communities they serve.

Inflation has dropped and, to an extent, I think there have been some changes. People do have a bit more money in their pockets to spend as food and other prices have come down from the highs of a year or two ago, but many are still struggling. The lower prices we're seeing in the bigger stores are going to a take a long time to be reflected among small indepedent retailers, whose margins are often tighter. People are still struggling and will continue to struggle for some time. I just hope that small retail businesses can hold on and still be there when people's spending power returns in earnest.