BDO weekly: UK fashion sustains growth despite challenging conditions

The UK retail sector has maintained a positive trajectory for the seventh consecutive week, with total like-for-like (LFL) sales increasing by +1.54%. This growth, albeit more modest than previous weeks, is particularly noteworthy given it's set against a robust +14.45% base from the same period last year and challenging weather conditions.

The fashion sector continues to be a key driver of this sustained performance, with total LFL sales increasing by +0.73%, marking its fifth straight week of positive results. This resilience in apparel sales, both in-store and online, suggests that consumers are actively engaging in "change of season" shopping as autumn progresses.

Store fashion sales demonstrated notable strength, rising by +2.42% and achieving their seventh consecutive positive week. This in-store momentum occurred despite an overall -2.0% drop in footfall across retail destinations. High streets saw a -3.9% decline and shopping centres a -1.4% decrease in foot traffic, potentially impacted by the week's weather, which quickly turned cooler and wetter, with northern areas experiencing flooding. The positive performance of physical fashion stores amidst these challenges highlights effective merchandising and a strong consumer desire for new season apparel.

While not as dramatic, non-store fashion sales also edged up by +0.17%, marking their fifth consecutive positive result. This continued, albeit flatter, growth in online fashion sales, against a very strong base of +34.38% from last year, underscores the enduring importance of e-commerce. Retail parks, in contrast to other physical locations, saw an improvement in footfall by +1.4%, indicating varying consumer responses to the changing weather and shopping environments. The fashion sector's ability to maintain growth across both channels in a tougher week bodes well for the upcoming autumn and winter trading periods.