Spending on fashion saw a significant downturn last month, blamed partly on delayed winter clothing purchases.
- The BRC-KPMG report highlights a sharp year-on-year sales decrease, with overall retail sales down by 3.3%.
- Non-food sales, both online and in-store, faced substantial declines, hampered by low consumer confidence and rising energy bills.
- The shift of Black Friday into December contributed to October-November’s poor figures, says BRC chief executive Helen Dickinson.
- Retailers are worried about the potential impact of new budget costs and packaging levies, expected to add £7bn in expenses next year.
According to recent figures by the British Retail Consortium (BRC) and KPMG, fashion spending suffered considerably in the previous month. Overall UK retail sales declined by 3.3% year-on-year for November, in sharp contrast to an increase of 2.6% reported in the same period last year. This decline is below both the last three-month average growth, which stands at -0.1%, and the 12-month average of 0.5%.
The non-food sector, including fashion, experienced a downturn, with a 2.1% reduction in sales compared to the prior year. This follows a fall of 1.6% seen in November 2023 and sits slightly above the 12-month non-food average decline of 2.2%. Both in-store and online non-food sales have contracted, with online sales showing a notable decrease of 10.1% year-on-year.
The online market share for non-food items recorded a slight decline to 40.6% from the previous year’s 41.4%, albeit remaining above the 36.4% 12-month average. Helen Dickinson, CEO of the BRC, attributes part of this downturn to the shift of Black Friday sales into December, which affected November’s performance figures.
Consumer sentiment plays a significant role, with low confidence and increasing energy costs leading consumers to hesitate on non-essential purchases such as new winter clothing. On the contrary, health-related spending saw a boost, possibly due to the seasonal rise in illnesses.
Retailers now face the challenge of whether anticipated seasonal spending will occur later rather than vanish. This is crucial as they brace against the potential impact of upcoming budget and packaging levies, which could collectively cost over £7bn extra next year. This financial burden, without mitigating government measures, risks triggering price increases and job losses.
The fashion retail sector hopes consumer spending revives in the lead-up to Christmas to counteract early seasonal declines.
