Moody's: Rising Consumer Confidence To Boost European Retail Earnings Growth
A combination of economic recovery and rising consumer confidence will help to boost revenue and earnings growth across European retailers through to 2018, according to a new report by Moody’s Investors Service.
The report, Retail Europe: Moderate Overall Sales and Continued Earnings Growth Support Stable Outlook, says that European retail revenue growth will remain between 2% and 3% over the next 12 to 18 months.
Russian retailers are likely to see double-digit growth, the report states, while Spanish retail revenues will grow 3.0%, as the country emerges from the downturn. Revenue growth in Germany, France and The Netherlands is likely to stand between 1.5% and 2.0%.
"European retailers perceived as offering superior value at various points across the price spectrum, for example affordable luxury players, will outperform those perceived to offer mediocre products at less attractive prices," said David Beadle, a Moody's Vice President - Senior Credit Officer and the report's author..
Moody’s also reported that the recent UK Brexit vote is likely to impact clothing retailers in the country, however food retailers are likely to be less exposed.
"The Brexit vote's impact on UK food retailers will be more muted, in the short term at least, due to the non-discretionary nature of food and less exposure to currency volatility," said Beadle.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.