UK Clothing & Footwear Sector Report summary
September 2023
Period covered: Period covered: 30 July – 26 August 2023
3 minute read
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 rose xx% YoY, and Footwear sales increased xx% YoY in August, below the rate of inflation, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
Clothing & Footwear sales’ mixed performance in August reflects several up (+) and downside (-) factors, including:
Volatile weather (-): Unpredictable weather continued in August, with below-average temperatures and limited sunshine impacting sales of summer lines.
End of Season Discounts (+): Faced with surplus summer inventory and the imminent arrival of the autumn season, retailers resorted to discounting to stimulate demand. While this supported topline growth, it may have also adversely impacted retailers’ profitability.
Back to School Slow Start (-): August usually marks the peak period for back-to-school sales, especially for uniforms and shoes as the new school year begins. However, this year saw a sluggish start to these sales, with consumers delaying essential purchases until the last moment. While sales did pick up towards the end of the month, they still lag last year's figures.
Key August Events (+): The success of England’s Lionesses at the Women’s World Cup, and the hugely popular release of the Barbie film fuelled sales of sportswear and pink themed outfits respectively.
Low Confidence
After heavy rainfall in July, typical summer sales patterns faced further disruption in August. Storm Antoni brought the strongest August winds in 30 years in early August, followed by Storm Betty, which brought heavy downpours and high winds in mid-August (Met Office).
H&M's Q3 trading update cited weather-related challenges for fashion retail, with cooler temperatures in July and August impacting summer demand and unusually hot September weather delaying the start of the autumn season.
However, footfall improved in August, edging up xx% month-on-month across all destinations as rainfall eased. The gap from pre-pandemic footfall narrowed to xx% in August from xx% in July, (Springboard) as consumers retrench back to stores to embrace experiences, save on delivery and returns fees and seek localised markdowns exclusive to stores.
Take out a free 30 day trial subscription to read the full report.
Cost-conscious consumers start Christmas shopping early
Source: Retail Economics, Auctane
