Report Summary

Period covered: 27 August - 30 September 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 fell xx% YoY, while Footwear sales rose by a modest xx% YoY in September significantly below the rate of inflation, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). 

Clothing & Footwear sales’ slow performance in September reflects several up (+) and downside (-) factors, including:

Autumn Heatwave (-): An exceptionally warm September made for a difficult start to the autumn season for fashion retail. This was compounded by a tough annual comparison, with consumers spending on warm winter clothing last year ahead of energy price hikes.

Late Summer Disruption (-): After a slow start in August, September brought further delays for back-to-school sales as dozens of schools were forced to close over fears of reinforced autoclaved aerated concrete (RAAC) failures in buildings. Further disruption for back-to-school sales arrived in the shape of air traffic control failure, leading to delays and cancelled flights over the August bank holiday. Sales did arrive, but later than normal as households held out as long as possible to make purchases.

Exceptional comparisons (+): The funeral of Queen Elizabeth II took place on 19 September 2022, with store closures and a sombre national mood making for unusual year-on-year comparisons this month.

Indian Summer 

The heatwave – it was the joint warmest September since records began - and continued cost of living pressures meant sales of autumnal lines were off to a slow start. 

Footwear fared better than clothing, with sales values edging up xx% compared to clothing’s year-on-year fall of xx%. However, sales growth in both categories was significantly lower than inflation in the sector, which was xx%.

As a result of unseasonal weather, many clothing and footwear retailers will be sitting on excess stock, which could drive discounting further and bite into margins heading into the golden quarter.

While the warm weather had a negative impact on demand for new lines, it did get consumers venturing out to physical retail and leisure destinations, supporting footfall.

Barclaycard reported the weather encouraged high street visits, with consumer card spending growing 4.3% in September, up from August’s 2.8%. Clothing stores saw a slight improvement (-0.2%) compared to August (-0.7%).

Take out a free 30 day trial subscription to read the full report.

Thinking about your shopping in the final three months of the year (Black Friday, Christmas), what are your spending intentions?