The latest findings from the BDO High Street Sales Tracker paint a grim picture for fashion retailers in the UK, as they continue to face challenges in October. Despite efforts to boost sales and reverse the previous year’s decline, a like-for-like drop of 2% was recorded this year. Consumers in the UK remain cautious with their spending habits, leading to a tough time for retailers across the board.
It has been well over a year since BDO’s High Street Sales Tracker reported any significant growth in in-store sales, with October proving to be particularly challenging for retailers. The month marked the ninth consecutive period of negative sales, indicating a worrying trend for the industry. Last year, the unseasonably warm weather impacted sales of autumn apparel, while this year, the mild weather at the start of the season had a similar effect on winter clothing items like knits and coats.
Not even the buzz around Halloween was enough to give retailers a much-needed boost, as shoppers opted to wait for November discounts instead. The lifestyle goods and homewares sectors also struggled throughout October, with no signs of positive growth in sight. While there was a modest uptick in fashion sales towards the end of the month due to a sudden cold spell, the overall figures still showed a 1.3% decline for the month.
Online retailers didn’t fare much better in October, with sales growth coming in at just 10.5%, one of the lowest results seen in nearly a decade. Sophie Michael, Head of Retail and Wholesale at BDO LLP, expressed concerns over the lackluster performance for the second consecutive October, a crucial period for retailers as they gear up for the upcoming holiday season. With squeezed margins and the looming threat of Black Friday discounts, retailers are bracing themselves for a challenging end to the year.
As consumers continue to hold off on discretionary spending until they spot a good deal, the tough start to the final quarter could become the new normal for retailers in October. The struggles faced by fashion retailers both on the high street and online underscore the wider challenges within the retail industry, with hopes for a turnaround as the festive season draws near.
For more information on the UK retail industry, check out this helpful Retail Gazette article. Additionally, learn about the latest trends shaping the retail landscape by visiting Forbes Retail.
