In June, the UK fashion industry received a much-needed boost with a remarkable 73.7% increase in total like-for-like sales. Although this growth is compared to a low base of -20.9% in June 2020 due to the pandemic, it is still an encouraging development for fashion retailers. Online spending played a significant role in driving this growth, with total non-store like-for-like sales rising by 8.2% in June, despite a high base set in June 2020.
Not only fashion, but lifestyle retailers also experienced a surge in sales, with total like-for-like sales increasing by 50.9% in June. This positive trend marks the fourth consecutive month of strong results for the lifestyle sector, indicating consistent consumer demand throughout the month despite reduced online sales.
Homeware sales also saw a robust performance in June as shoppers prepared their homes for the Euros football tournament. Total like-for-like sales in this category rose by 22% compared to the same month last year.
Overall, combining both in-store and online sales, total like-for-like sales leapt by 52.1% in June. This recovery is significant as it reflects not only an improvement from the challenging conditions of the previous year but also signifies progress in recouping some of the losses incurred during the pandemic.
Several factors contributed to the boost in retail sales in June. The unpredictable summer weather and England’s success in the Euros football tournament played a role in driving consumer spending. The final two weeks of the month in 2021 were notably better than the same period in the previous year, demonstrating the strength of the industry’s reopening. Sales surged by 41.74% in the third week compared to the previous year, while the final week saw a 37.8% improvement.
Sophie Michael, the head of Retail and Wholesale at BDO LLP, expressed optimism about the future of the sector. She highlighted the growing consumer confidence and the sustained recovery seen in April, May, and June. With higher footfall, increased in-store spending, and online sales exceeding pre-pandemic levels, there are several reasons to be hopeful.
However, Michael also raised concerns about potential challenges the industry may face. She warned of a major logistics challenge as supply pressures restrict the availability of stock to meet the pent-up demand. Additionally, the threat of inflation looms on the horizon, which could impact consumer spending and the industry’s growth in the autumn.
Overall, June proved to be a positive month for the UK fashion industry, with steady online demand, strong sales in various categories, and signs of recovery compared to the previous year. While challenges may lie ahead, the industry remains resilient and optimistic about its prospects in the coming months.
Useful links:
– BBC: UK fashion retailers see sales surge in June
– Retail Gazette: UK fashion sales see positive recovery in June
