In the month of November, the fashion industry in the UK experienced a decline as consumer spending remained sluggish, marking only a 3.3% year-on-year growth, the lowest since March. Specifically, department stores and clothing retailers saw decreases of 7.1% and 2.9%, respectively. This trend was further reflected in the plateaued average transaction value for clothing purchases.
Despite a boost in spending within the entertainment sector, with sales soaring by 30.5%, consumers continued to exercise caution in their overall expenditure. The effects of this cautious approach were felt by the fashion industry, with womenswear dropping by 1.6%, menswear declining by 3.2%, family clothing seeing a 4% decrease, and shoe shops experiencing only a marginal 0.1% uptick. Even sports shops faced a 2.2% decrease in sales, despite the popularity of athleisure wear.
Jewellery purchases took a hit, with a 5.2% decrease, missing out on potential gifting opportunities during the holiday season. In contrast, cosmetics stores saw a 3.3% increase, highlighting the resilience of the beauty sector amidst challenging economic conditions.
The decline in consumer confidence was palpable, as only 52% of UK adults expressed confidence in their household finances. This wariness towards spending, even during the festive season, resulted in a notable drop in clothing sales, reminiscent of figures last seen in October 2017. Department stores and electronic retailers also faced significant contractions, with the latter experiencing a 4.9% decrease.
Looking towards December, the impact of Black Friday did not hinder consumer enthusiasm, with a mere 16% of shoppers intending to lessen their expenses due to early holiday shopping. However, amidst record-low consumer confidence levels and prevailing uncertainty, the performance of the retail sector leading up to Christmas remains uncertain. Both Barclaycard and the British Retail Consortium/KPMG will be keeping a close eye on spending patterns to offer valuable insights into the industry’s trajectory.
For more information on UK retail trends, visit Retail Gazette and British Retail Consortium.
