We knew trading was bad on the high street but now we know just how bad. Britain’s fashion retailers have endured the worst July since 2009 when the country was in recession.
Fashion sales slumped by 3.5 per cent last month compared with last year despite the start of the sales, a report from BDO, the consultancy, shows.
Poor performance by fashion retailers dragged overall sales into the negative at -0.6 per cent last month, which BDO said also “reflected consumer reaction to rising inflation and falling wages”.
According to BDO’s high street sales tracker, which looks at weekly like-for-like sales for 85 retailers with 10,000 stores, shopkeepers started the month feeling bullish after a strong June with many expecting to clear their summer stock.
However, poor weather towards the end of July coupled with volatile consumer sentiment and summer holidays dashed those plans.
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Sophie Michael, head of retail and wholesale at BDO, said: “Poor weather at the end of July combined with consumers starting to feel the pinch took its toll on fashion last month.
“It is apparent that shoppers are diverting their attention to essentials and tightening their belts. The concern is that sales have diminished in a typical month for discounting, when retailers traditionally look to clear stock to make room for new ranges.
“The results imply that the road ahead may be even more challenging than expected.”
Lord Wolfson also reported yesterday that Next had experienced lower clearance rates.
Ms Michael said: “As the autumn season approaches, all retailers will need to focus heavily on how they present their collections and engage with their customers
to entice them to spend.”
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There was some good news, however. Homewares sales fared better, rising 5.8 per cent as shoppers bagged bargains. Lifestyle sales were also up 4.5 per cent year-on-year, bolstered by overseas visitors.