Online Fashion fuels UK retail growth amidst shifting consumer habits

The UK retail sector experienced a significant uplift this week, with total like-for-like (LFL) sales climbing by +6.02%, effectively offsetting a weak base of -1.08% from the same period last year. This robust growth was primarily propelled by exceptional non-store sales performance across all retail segments, particularly within the fashion industry.

The fashion sector continued its strong trajectory, with total LFL sales increasing by +5.84%. This marks the category’s fifth consecutive positive week, underscoring its pivotal role in driving the overall retail momentum. The growth was overwhelmingly concentrated in the online channel.

Non-store fashion sales showcased an extraordinary surge, soaring by +20.72%. This remarkable double-digit growth marks the fifth consecutive positive week for online apparel, against a broadly flat base from last year. This strong performance highlights a significant shift in consumer behavior, with a clear preference for digital platforms for fashion purchases. This online triumph occurred even as the UK experienced mild, dry but overcast weather, turning chillier by the weekend.

Conversely, physical retail faced a challenging week. Total store LFL sales across all segments slipped by -0.46%, and this negative trend was also reflected in the fashion sector, where store fashion sales dropped by -0.61%. This marks the third negative outcome for physical apparel sales in the past five weeks, despite offsetting a very weak base from the previous year. The decline in physical store sales coincided with an overall -1.4% drop in footfall, with high streets seeing a -2.5% decrease and shopping centers a -0.9% decline. Retail parks, however, saw a slight increase in foot traffic of +0.2%. This clear divergence in performance between online and in-store channels underscores the ongoing evolution of the retail landscape, with online fashion firmly in the driving seat of growth.