New research from Simon-Kucher highlights growing areas of price concern as the UK approaches Brexit.
68% of consumers are now worried about price changes as a result of Brexit it says, with half feeling that retailers would be justified in increasing their prices after the UK's departure
Simon-Kucher has been plotting pricing sentiment since the referendum vote and its latest research suggests growing concern over price increases from both Remain and Leave voters. 68% stated they were either 'Slightly concerned' or 'Very concerned' about prices increasing as a results of Britain leaving the EU. The majority of this increase comes from Leave voters, with 45% now indicating a level of concern.
It also found that half of those surveyed now feel retailers would be justified in increasing prices after the UK's departure if the reasons of higher costs due to Brexit were given. Remainers generally were more understanding with 69% indicating retailers were justified or partly justified. In contrast only 34% of Leavers felt the same. This indicates a tough time ahead for retailers trying to pass through increased costs after Brexit.
"We have seen consumer facing companies such as retailers and restaurants struggle to pass through price increases incurred as a result of increased exchange rates following the leave vote and we don't expect to see this change moving forward", commented Rosalind Hunter, Senior Director & Brexit Research Lead at Simon-Kucher.
Other Brexit-driven shifts Simon-Kucher notes are modest swings towards buying British goods — and "staycations".