The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — UK consumer spending jumped the most since 2016 last month, led by a surge in Internet purchases as bars and restaurants continued to suffer.
Online demand surged 16.2 percent in July compared with a year earlier, according to a monthly index by Visa and IHS Markit. Total spending rose 2.4 percent, while hotels, bars and restaurants say an 18 percent drop.
Household goods, as well as food and beverages continued to see improvement. But the slump in face-to-face spending has already led to store closures and job losses. Retail chain Marks & Spencer Group Plc this week announced that it would reduce headcount by about 7,000, adding to a list of companies that are scaling back operations.
Visa said the spending figures are moving the right direction but it’s “cautious” about the outlook. Unemployment is rising, and the ending of the government’s wage-support program in October could lead to further job losses and weakness in consumer confidence.
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“The path to economic recovery remains fragile,” said Annabel Fiddes, an economist at IHS Markit. “The winding down of the government’s furlough scheme is likely to push up unemployment and, combined with weaker pay trends, could hinder any future rises in household consumption.”
By Fergal O'Brien.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.