Last week, I attended FRP’s Retail Breakfast event, where a panel of industry experts shared valuable insights into the evolving retail landscape. The discussion provided an excellent opportunity to gain a deeper understanding of the current health of the sector, and the challenges that lie ahead.

The conversation was centred around the future of the industry, including the potential implementation of additional US tariffs, the upcoming UK Spring Budget on 26 March 2025, and the ongoing economic impacts of the war in Ukraine. These factors could significantly affect retailers’ overall performance and profitability, leading to disruptions in their supply chains (especially for businesses reliant on international goods), reduced sales from a decrease in consumer confidence, as well as rising costs driven by inflation.

The panel’s key message for retail businesses was the importance of remaining agile and preparing for future uncertainties. However, the discussion also revealed that retailers are in a relatively strong position to face these uncertainties, having performed strongly during the Christmas season and built resilience after the challenges posed by the COVID-19 pandemic. 

Businesses are also considering cost-saving strategies and may attempt to push cost pressures into their supply chains. However, the success of this approach will depend on the suppliers’ ability and willingness to absorb costs.

From my experience as a Forensic Accountant, regularly involved in assessing quantum in loss of profit and damages claims, I have recently observed that businesses across various industries are involved in breach of contract disputes, partly due to external pressures affecting the execution of supply chain agreements. With additional strain on the supply chain, as discussed by the panel, and with retailers considering renegotiations of supply agreements to reduce costs, we may see an increase in breach of contract disputes across the retail industry.

FRP Advisory offers forensic dispute services to assist retail businesses and their instructing solicitors at any stage of a breach of contract dispute. In the breach of contract cases we have assisted with, we have observed disputes arising from issues such as:

• exiting onerous contracts;
• default on payment;
• failure to supply purchased stock; or 
• delays in delivering goods,

each of which is influenced by the external pressures on businesses.

In the early stages of litigation and arbitration, we can estimate the potential outcome of a claim, which may be useful for mediation or other alternative dispute resolution purposes. At later stages of proceedings, we can provide independent expert witness services. Our experienced forensic accounting experts, supported by our skilled team of qualified accountants, can assess the damages payable and provide expert evidence in Court or before a Tribunal.