UK Clothing & Footwear Sector Report summary
June 2022
Period covered: Period covered: 01 May – 28 May 2022
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Clothing & Footwear Sales
Clothing sales jumped 00% YoY in May, with Footwear growing by an even stronger 00% according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
After accounting for inflation, Clothing & Footwear retail sales volumes rose by an estimated 00% and 00% YoY respectively in May.
Despite cost-of-living pressures, strong demand for both men’s and women’s formalwear continued during May, boosted by the return of office working, weddings and other social events
Experiences remain key part of value equation
Against a more cautious consumer backdrop, retailers will have to work harder to win over the hearts, minds, and wallets of shoppers.During the pandemic, many shoppers bought more consciously, locally, and embraced online, heightening their expectations.
In today’s environment of high customer expectations and reducing loyalty, experiences can be a key differentiator for retailers.
A third of consumers surveyed said that the pandemic has raised their expectations when shopping, while 00 00 00 (00%) would happily pay more in return for a better or more memorable shopping experience despite squeezed budgets.
Brands that can deliver enjoyable, educational and differentiated experiences will retain consumers but will likely win new ones too.
Sector outlook
Fashion retail has enjoyed a stellar bounce back over the last twelve months, but the outlook appears more gloomy, with the autumn and winter season set to be a challenging one for retailers as cost-of-living pressures intensify over the months ahead.
Inflation hit a 40-year high in May (00: 00%), while consumer confidence has plunged to record lows (00: 00), as rising living costs, rising interest rates, and higher taxes culminates in growing fears of an economic slowdown. The Bank of England now expects inflation to reach as high as 00% in Q4 2022, reducing discretionary spending power for most households.
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Thinking about when shopping for a non-essential item, what is the most important aspect of the retail experience to you?
Source: Retail Economics, Squire Patton Boggs. Sample: 2,000.
