UK fashion purchases experienced a slight dip in May, according to the Office for National Statistics. Retail sales in the UK saw an unexpected decline last month, with volumes dropping by 1.4% compared to April. This follows a significant increase in April when retail restrictions were eased. Overall retail sales by value also fell by 0.8% compared to the previous month. The fashion sector specifically saw a decline as well, in line with the broader retail decline.
However, when looking at the combined figures for April and May, total retail sales volumes were up 7.7% compared to March. In fact, they were even 9.1% higher than February 2020, the last month before the impact of the coronavirus pandemic. The monthly decline in May was primarily driven by a drop in food sales, as consumers started to dine out again once restrictions were lifted. On the other hand, non-food stores experienced a 2.3% uplift.
Clothing and department stores recorded monthly volume declines of 2.5% and 6.7% respectively. These drops followed strong growth in previous months. However, when looking at the quarter-on-quarter growth up to May 2021, it highlights the continued recovery in these sectors, with growth rates of 28.9% and 12.6% respectively.
Although online sales in the clothing sector remained strong, especially compared to the same period last year when lockdown restrictions caused a decline in fashion-related purchases, e-commerce stores in textiles, clothing, and footwear saw a slight decline of 3.8% on a monthly basis. Department stores also struggled, with a 1.4% monthly decline.
The proportion of retail sales conducted online continues to be significantly higher than pre-pandemic levels. However, in May, all retail sectors (except for food stores) reported a decrease in their proportions of online sales as consumers began returning to physical stores. The total proportion of online sales decreased to 28.5% in May, down from 29.8% in April. Nevertheless, compared to February 2020, the value of total online retail sales in May was 58.8% higher, while in-store sales were 1.3% lower.
Experts believe that online sales will never drop below pre-pandemic levels. Jacqui Baker, a partner and head of retail at RSM, points out that the pandemic has led to the widespread adoption of online shopping among consumers. Oliver Vernon-Harcourt, head of retail at Deloitte, agrees, stating that certain behaviors adopted during the pandemic, such as increased online shopping, are likely to persist even as restrictions ease. He also notes that online sales in the fashion sector are currently outperforming even the levels seen during lockdown, indicating a shift in consumer behavior towards trying on clothes in the comfort of their own homes.
Useful links:
BBC – Retail sales fall in May with clothing stores hit
The Guardian – UK retail sales growth slows in May despite Covid unlocking
