Fashion sales in the UK have experienced a significant boost, driving growth in the retail sector, according to BDO’s High Street Sales Tracker (HSST) for October. Despite worries about consumer confidence and supply shortages, fashion sales saw a massive increase of 36.8% compared to the same period last year. This positive growth in the fashion sector has contributed to consecutive sales growth in the UK retail industry.
The increase in sales can be attributed to the Halloween festivities and the half-term holiday, which helped raise total like-for-like sales by 19.9% compared to the previous year. Online sales also continued to rise, with a 15.7% increase in non-store like-for-like sales. However, the growth rate for online sales is returning to more normal levels as physical stores have reopened and consumers are more willing to shop in person.
Physical stores also experienced growth, with weekly like-for-like sales consistently surpassing the previous year. In the final week of October, sales reached a peak of +27.52%, driven by the combination of Halloween and the half-term holiday. The fashion sector saw significant growth during this period, with sales increasing by 45.78%.
Sophie Michael, Head of Retail and Wholesale at BDO LLP, emphasized the importance of the Golden Quarter for retailers and the need to sustain sales momentum until Christmas. However, she acknowledged the challenges faced by retailers, including staffing and supply chain issues, as well as the decline in consumer confidence from September to October. The rising cost of living and a potential spending slowdown in the lead-up to Christmas are concerns for the industry.
To navigate these uncertainties, retailers must remain adaptable, respond quickly to changing demands, and ensure they have the necessary workforce and logistics capabilities. Despite supply chain challenges, offering an appealing product range will be crucial.
The strong performance of the fashion sector in October suggests that consumers are starting to feel that life is returning to normal, despite concerns about rising Covid cases. Although the future remains uncertain, the positive growth in fashion sales provides hope for UK retailers as they enter the crucial holiday shopping season.
Useful links for this article:
1. BDO’s High Street Sales Tracker
2. BDO’s Retail and Consumer Sector
