Clothing sales witness first decline since March

According to a report released today by the British Retail

Consortium, clothing sales experienced its first decline in total sales since March, due to the unseasonable warm weather, coinciding with a previous survey released by the Confederation of British Industry.

On a total basis, retail sales were up 2.6 percent, up from the 1.1 percent increase witnessed last year in the same month, with food sales growth averaging 2 percent over the past three months. However, last month consumers held off in purchasing the newest Autumn/Winter collections and even the lure of early sales offered in stores and online was not enough to boost clothing sales up.

The general director of the BRC, Helen Dickinson, said: “Clothing sales fell for the first time since March, suggesting that many customers prioritized leisure and home improvements over refreshing their wardrobes until more autumnal conditions took hold.” Head of KPMG retail, David McCorquodale agreed and added: “October was another difficult month for retailers reminding us that recovery is a slow, relentless slog. Retailers will struggle to maintain a sustained sales recovery until wage growth outpaces price inflation.”

However with the upcoming holiday season just around the corner, there are signs that conditions will improve. McCorquodale believes that the “next two months are vital with stock holdings, merchandising and margins being key to success. Shoppers seem reluctant to buy their gifts early and at full price and many may be delaying their purchases in the hope that retailers will discount festive goods as the big day nears. The pressure is on retailers to kick start sales, without the need to heavily discount. Christmas has always been retailers' golden goose and a good performance in the next two months will help those in the red move back to the black."

Dickinson echoed his sentiment and noted: "Consumer confidence paused in October, and while conditions remain challenging, the signs are that customers are managing their budgets well while allowing some leeway for occasional treats. Retailers will be looking to respond to this appetite for good value with a little luxury here and there in their promotions and product offerings for the Christmas period."