Consumer concerns weighed heavily on fashion spending in November, despite the need for cold-weather clothing. Two key monthly surveys revealed that while UK consumer spending increased, it failed to keep pace with inflation, resulting in a decline in real terms.
According to the British Retail Consortium (BRC), total sales experienced a 4.2% rise compared to November 2021, surpassing the 1.6% increase in October. However, the impact of nearly double-digit inflation led to a decrease in sales volume. Although sales of winter clothes were boosted by the colder weather, overall sales were impacted by rising prices. On the other hand, home furnishings saw stronger demand during the Black Friday period.
In a separate survey conducted by Barclaycard, consumer spending on debit or credit cards increased by 3.9% year-on-year, higher than October’s figure of 3.5%. Discount stores emerged as winners, experiencing a significant 5% rise, the highest since April 2021. However, the majority of consumers were primarily focused on purchasing essential items, leading to a 7.1% increase in spending in this category. The survey also revealed that people have been shopping earlier for Christmas due to concerns about product availability and rising prices. Additionally, consumers expressed worry about overall higher prices, with many taking steps to save energy at home and resorting to wearing extra clothing to keep warm.
As a result of these factors, spending on non-essential items grew at a weak rate. Despite the necessity to purchase cold-weather clothing as temperatures dropped, the fashion category as a whole experienced a 3% decline. Department store spending also decreased by 1.5%.
Although transaction volumes on Black Friday increased compared to 2021, separate data from Barclaycard Payments suggests that this growth may not extend to the festive season. A significant proportion of Britons plan to reduce their Christmas purchases this year, with many intending to spend less on gifts for family and friends and scaling back on festive parties and socializing.
In conclusion, the combination of consumer concerns and inflationary pressures has negatively impacted fashion spending in November. Despite the need for cold-weather clothing, consumers have prioritized essential purchases and sought out discounts, resulting in a decline in overall fashion sales. The upcoming festive season remains uncertain, with a substantial number of individuals planning to cut back on their Christmas expenses.
Useful links:
1. Fashion United: UK Fashion Retail Suffers Worst November 2021
2. BBC News: UK Shop Prices Hit Record High on Inflation Pressure
