A recent study has revealed that 46 per cent of small businesses have noticed a drop in spending and a further 44 per cent have put technology investment on hold.
Despite positive retail results of the last month, a study by Worldpay has found that small retailers are holding off on investment, which the company warns could be fatal.
The payment processing giant has warned retailers that holding off on investment to modernise their business and meet rapidly evolving shopper habits could significant impact their ability to grow in the coming months.
“Whilst it‘s too early to tell what the long term effects of Brexit will be, the fundamental principle of retail will remain the same – focus on the customer,” UK managing director of Worldpay Dave Hobday said.
“The businesses that will thrive in the post-vote environment will not be those that batten down the hatches, but those that invest and innovate to deliver the type of technology driven experience and service their customers are demanding.”
Following the referendum result the market appears to remain buoyant, reporting the best retail results seen in six months. Nearly half of retailers believe that these levels will not last and as a result are remaining cautious on their investment, especially into online platforms.
Further results found that retailers with omnichannel presence were far more confident about the coming months and had performed better following Brexit due to overseas investment and the rise in credit card spend.
Hobday continued: “Recent high street data suggests the UK retail economy remains buoyant following the Brexit vote, and there are clear opportunities for businesses to thrive in post-referendum environment.
“In particular, multi-channel strategies which allow retailers to broaden their customer base and appeal to non-UK shoppers will enable businesses to capitalise fully on the current competitiveness of UK products internationally.”