Disposable incomes are set to become even more restricted this year, presenting another barrier for brick and mortar retailers.

With annual offline non-food growth forecast to remain under two percent over the next five years, retailers must act swiftly to rightsize their store portfolios, and rid themselves of unprofitable and unnecessary stores.

If inflation rises as expected and shoppers have to divert funds to food and other essentials weak footfall is to be expected.

Spending on non-food categories in 2017 will, therefore, shift further online, with sales in stores and via mail order declining by 0.3 percent — for the second year running.

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In-store and mail order spending on clothing & footwear, electricals, and furniture is forecast to fall even further than this.

Weather-induced trading volatility is expected to further punish clothing & footwear store sales in 2017, while furniture is forecast to decline overall this year as a slowdown in the housing market results in shoppers delaying spending on big-ticket items.

The maturity of the online channel and retailer investment in multichannel propositions mean in-store electricals sales are not forecast to grow until 2022.