Report Summary

Period covered: 31 August - 04 October 2025

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 by xx% year-on-year in September, while footwear increased by xx%.
• Both categories maintained annual growth but fell short of the increases seen in August and were notably softer than the figures recorded a year ago.
• September trading was marked by hesitancy. The sector remained active, but momentum was uneven, with shoppers responding cautiously to seasonal launches and delaying spend until prompted by price or necessity.

Key sales drivers

• Weather played a significant role in influencing demand. Milder-than-usual temperatures during the early part of the month limited appetite for autumn wardrobes, delaying interest in outerwear, boots and heavier fabrics.
• Retailers brought forward promotions to stimulate activity, focusing on transitional layers and wardrobe staples that offered flexibility without requiring full seasonal investment.
• Consumer sentiment also contributed to a more reserved tone. Many shoppers, facing rising household costs and wider uncertainty ahead of the Autumn Budget, approached apparel purchases pragmatically.
• Promotional events around payday and student arrivals generated traffic, but full-price sales proved more challenging.

Spotlight: Next

• Next delivered a standout third-quarter performance, with full-price sales up xx% year-on-year, more than double its xx% guidance.
• The Group’s domestic sales rose by xx%, supported by improved stock availability, strong online execution, and resilient store performance.
• International operations saw even sharper growth, with sales up xx%, driven by higher direct-to-consumer traffic and operational gains from the consolidation of logistics under the ZEOS platform.
• As a result of the Q3 beat, Next upgraded its Q4 full-price sales outlook from xx% to xx%, and raised full-year profit guidance to £xxbn. Group sales guidance was lifted by £xxm, reflecting strong clearance activity and stronger-than-expected trading.
• The Group’s ability to adapt logistics, drive international growth and maintain a disciplined promotional stance continues to set it apart as a bellwether for the wider fashion and home sector.

Macroeconomic backdrop

• September’s macroeconomic backdrop offered a mixed setting. Consumer confidence weakened, with GfK’s headline index slipping to -xx from -xx in August, as households grew anxious ahead of the Autumn Budget and the likelihood of tax increases.
• Inflation held at xx%, offering some relief but leaving price pressures uneven. Goods inflation edged up to xx%, while services inflation remained high at xx% due to wage-driven costs in hospitality and housing. Food inflation slowed to xx%, its first fall in six months, helped by easing supply costs and aggressive supermarket promotions.
• Labour market data pointed to gradual softening. Unemployment rose to xx%, the highest since mid-2021, but vacancies slipped to around xx. and pay growth slowed to xx%, squeezing real incomes.

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Clothing and Footwear year-on-year growth