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.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.