The London bombings could have a disastrous effect on the retail trade across the UK – including Belfast, according to University of Ulster expert Donald McFetridge.

“Any kind of terrorist threat or attack - and particularly a repeated attack - is bound to have an adverse effect on trading patterns and consumer behaviour,” said Mr McFetridge, from the School of Business, Retail and Financial Services.

“Consumers, threatened by acts of terrorism, often respond differently. However, most prudent consumers remove themselves from the locations where such attacks are likely to happen - principal shopping districts, airports and public transport.

“Such dramatic changes in consumer behaviour often have a direct adverse effect on retailers and their trading patterns. When consumers are not in shopping venues to spend their money, retailers fail to sell off their stock and trading becomes increasingly difficult.  This can lead to excessive stock levels, cash-flow problems and a glut of unwanted seasonal stock, particularly in the drapery sector, coming into the autumn/winter period.

“While the immediate impact will initially be most deeply felt in the metropolis of London, the effect is likely to spread to other principal shopping destinations and cities like Birmingham, Manchester, Leeds and Belfast.”

Mr McFetridge added that visitors who had been planning to come to the UK pre 7/7 and 21/7 may now review their travel plans.

Even though London is the major tourist destination in the UK, visitors often travel to other parts including Belfast and the Republic of Ireland. Any reduction in the number of visitors to London would therefore have a knock on effect.

He added: “It is vital, particularly at this time of difficult trading in the high street, for retailers to make every effort possible to attract shoppers back to their businesses in the hope that they can be the winners in this battle against terrorism and economic downturn.”

For further information, please contact:

Trina Porter
Telephone: 028 71675511
Email: Trina Porter