Fashion industry sees negative growth first time in 6 years

New data has shown the UK's fashion industry suffered negative growth for the first time in six years. The figures, compiled by Kantar Worldpanel, were calculated in the year to June 5, before the Brexit referendum result. A negative growth of 0.1 percent show a clear fall in spending on clothing, footwear and accessories.

According to the research a quarter of the money spent on fashion (23 percent) is now online, compared to just 2 percent a decade ago. However, there is still a need for businesses to maintain both physical stores and online outlets; one in five items are bought from a retail park.

Glen Tooke, consumer insight director at Kantar Worldpanel, said: "The rate of growth has been steadily declining for almost a year now. Stores have become increasingly reliant on discounting and power has shifted into the hands of consumers who have come to expect discounts throughout the year and who are trained to shop during sale periods.

"Retailers are suffering from these shifting expectations - before its administration, discounting accounted for almost 60 percent of BHS sales while French Connection and Karen Millen both sell only 37 percent of stock at full price."

The recent collapses of BHS and Austin Reed have impacted the industry and consumer confidence is again at an all time low. The future of Britain outside of the Europe Union is widely expected to negatively affect the high street as shoppers remain cautious.

Image: Oxford high street, Wikipedia