UK retail sales flat-line, consumers stockpile food ahead of Brexit No Deal
Updated 04 September 2019
Reuters
LONDON: British retailers saw their sales flat-line in August as shoppers cut back on non-essentials and some households stockpiled food ahead of Brexit, surveys showed on Tuesday.
Annual total sales growth fell to zero from the weakest July rise on record of 0.3 percent, the British Retail Consortium (BRC), which groups major high-street chains and supermarkets, said.
That pushed down the average pace of sales growth over the past 12 months to 0.4 percent, the weakest levels since the
consortium began its data collection in 1995.
“Greater economic and political uncertainty has driven down consumer demand,” BRC CEO Helen Dickinson said. “While the summer weather gave a small boost to food sales, this was canceled out by a drop in non-food sales.”
Britain’s consumers have propped up Britain’s economy since the 2016 Brexit referendum, helping to offset cuts to investment spending by companies. But economists say recent signs of a weakening in spending by households raise the risk of a recession as the country prepares to leave the EU.
Prime Minister Boris Johnson says he will take Britain out of the EU on Oct. 31 without a transition deal to smooth the economic shock, unless Brussels makes concessions which it has so far ruled out.
The BRC showed that in like-for-like terms, which strips out changes in retail space, sales were down 0.5 percent compared with August 2018, their fifth fall in the first eight months of 2019.
Barclaycard also said it saw signs of concern about Brexit among consumers.
The payments card firm reported monthly consumer spending growth of 1.3 percent — sharply slower than growth of 4.5 percent in August last year.
Spending at discount stores bucked the trend and rose by 8 percent, a sign of the cautious mood of many consumers.
A survey commissioned by Barclaycard showed almost one in five respondents was stockpiling everyday items in case of shortages in the future.
Tinned foods, household supplies and dried goods topped the list of stockpiled products, it said.
However, a senior executive of a major British supermarket group, who asked not to be identified, told Reuters its most recent sales data had not shown any evidence of any
consumer stockpiling.
“A weak pound and worries about rising prices are causing concern for many, with Brits looking to better balance their household budgets,” said Esme Harwood, a Barclaycard director.
“That said, spending at pubs and restaurants remains robust, suggesting Brits have been making the most of the longer days by relaxing and dining out.”
Artificial intelligence is transitioning into a ‘digital employee’
AI can be an effective tool, business leaders tell Arab News
Not about jobs, but ‘convergence of human capital and AI’
Updated 4 sec ago
Hebshi Alshammari
RIYADH: Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.
Amidst the current global transformations, an active regional digital environment is emerging.
This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.
Arab News spoke to various business leaders about the emerging shape of the sector.
Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.
Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.
He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.
While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)
Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.
He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”
AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.
Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”
He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.
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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.
The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.
Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”
He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.
Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.
Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.
He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.
In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.
Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)
Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.
Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.
He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.
On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”
There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.
He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.
In the employment sector, Aljumhour expects fundamental changes in standards.
There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.
Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.
