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 — British retailers had their biggest sales decline since 2008 last month on wet weather and reduced tourist spending.
Comparable sales in stores dropped 4.3 percent, falling a fourth consecutive month, business advisory firm BDO said in its monthly report. The decline was led by a 5.5 percent slump in sales at fashion retailers.
The figures make “sobering reading,” Nick Bubb, an independent retail analyst, said by e-mail. BDO’s fashion survey only covered “relatively upmarket” retailers, and was not representative of the mass market, he said.
Despite a recovering economy, only 47 pence of every extra pound in the pockets of U.K. consumers is going through the tills of retailers, with an increasing amount being spent on leisure activities and holidays, Exane BNP Paribas said in a research note Thursday.
Next Plc, Dixons Carphone Plc, Sports Direct International Plc and Home Retail Group Plc are all scheduled to report results next week. Next shares fell 3.7 percent as of 9:41 a.m. in London, with Dixons Carphone shares down 2.6 percent.
August Washout
The strength of sterling means Britons are spending more on their holidays than at home. In the U.K. the reverse is true, with the strength of the pound meaning tourists have been more frugal, BDO said.
Summer rainfall levels in the U.K. were about 13 percent more than the long-term average, the Met Office said last week, a factor that the management of Halfords Group Plc said this week was behind an 11 percent drop in cycling sales.
BDO said its sales tracker surveys about 85 mid-tier retailers and includes a total of about 10,000 individual stores.
By Sam Chambers; editors: Matthew Boyle, Thomas Mulier, Paul Jarvis.
Malls across the US have been ‘flash robbed’ by groups of about 20 to 30 suspects stealing retail merchandise.
BoF Careers provides essential sector insights for fashion professionals in retail this month, to help you decode fashion’s retail landscape.
The sportswear giant’s lifestyle and fashion division is set to release a new campaign and “visual identity” to emphasise the cultural cachet of its Samba, Gazelle and Superstar sneaker franchises.
European retailers have been unlikely stock market stars this year, but a long spell of high borrowing costs and inflation has started to bite, so wary investors will be looking for reassurances from the likes of H&M and Zara-owner Inditex when they issue business updates this week.