Consumer spending on fashion falls 2.8 percent

Consumer spending on clothing and footwear has fallen 2.8 percent year-on-year in April, marking the biggest fall in fashion year-on-year spending since September 2014, according to Visa Europe.

The cold weather is seen as the main reason behind a relatively flat high street spending in April, which improved just 0.2 percent year-on-year, which hit fashion sales, as well as the shift towards ‘experiences’ such as eating out and holidays.

Overall, total consumer spending increased 2.5 percent year-on-year in April, up from 2.3 percent in March, with seven of the eight broad spending categories noting higher spending volumes, only clothing and footwear reported a decline. The strongest rates of expansion were seen across Recreation and Culture, up 7.9 percent year-on-year, Hotels, Restaurants and Bars, up 6.6 percent and Household Goods, increased by 3 percent.

E-commerce growth also saw an increase of 8.4 percent year-on-year, up from 4.1 percent in March, and the strongest rate of growth since December 2014. While face-to-face expenditure was broadly flat at 0.2 percent, much slower than the increases seen in the first two months of the year.

Visa Europe managing director UK and Ireland, Kevin Jenkins, said: “Growth in consumables remains evident, but consumer spending is increasingly focused on the experience economy. Eating out, booking holidays and discovering new experiences are all driving spending growth at a time when the lower cost of living is creating higher disposable incomes. In a month of mostly growth, the only sector to disappoint was clothing and footwear, again highlighting this shift.

“A very strong month for online sellers suggests much of the experience economy is being driven by pre-booking of activities online. While online prospered, face-to-face spending was relatively flat, highlighting the current discussion about the future shape of the high street as well. Eyes will now be on May, with a sunny start to the month providing promise for the high street but also a further fillip for restaurants and hotels looking to capitalise on our desire for experiences.”