According to reports from the British Retail Consortium (BRC) and Barclays, fashion spending in the UK was weak in May. Both the BRC-KPMG Retail Sales Monitor and Barclays’ monthly report indicated slow sales growth that fell behind inflation rates. Barclays’ figures encompassed consumer spending as a whole, including payment card expenditures, providing a comprehensive overview. The data showed that consumer card spending increased by only 3.6% in May, with spending on non-essential items rising by a mere 3%. The report attributed this sluggish growth to consumers cutting back in order to manage household expenses, along with the unseasonable weather, which deterred purchases of summer clothing.
The decline in clothing sales marked the largest decrease in over two years, with a significant drop of 5.1%. Department stores experienced their smallest uplift since November 2022, while discount stores saw a growth of 5%, indicating that consumers are prioritizing value when making purchases. The rising cost of living led 26% of shoppers to cut back on buying new summer clothes, and 35% planned to reuse their existing summer wardrobe.
The BRC-KPMG Retail Sales Monitor also reported weak sales growth in May. While total retail sales showed a 3.9% increase compared to May 2022, it is important to note that this figure is not adjusted for inflation, which is running in double digits. While food sales rose by 9.6%, non-food sales struggled to keep up with inflation, with only a 0.7% increase in total sales and a 0.5% increase on a like-for-like basis. In-store non-food sales experienced a 2.9% rise in total sales and a 2.2% rise on a like-for-like basis. However, online sales saw a decline of 3%. Health and beauty sales witnessed growth, but footwear, clothing, jewelry, and watch sales suffered a decline.
Despite the weak performance of the fashion sector during the month, Helen Dickinson, the CEO of the BRC, pointed out that sales showed signs of improvement towards the end of May as the weather improved. However, consumers still have other pressing priorities to consider, which may continue to hinder sales. Paul Martin, the UK Head of Retail at KPMG, cautioned that with high food inflation and the potential for further interest rate increases, the retail sector may face challenges in the coming months.
Useful links:
1. Independent
2. Vogue UK
