A warm October leaves United kingdom fashion retailers feeling sick after non-food sales fell towards the cheapest level for 5 years, based on BRC-KPMG sales monitor.
Shops endured a couple.2pc slip in non-food sales along with a 2.9pc slide on the like-for-like basis. Within the this past year, total non-food sales recorded a couple.1pc decline, the greatest drop since BRC-KPMG’s records started this year.
The downbeat results follows warnings from high-street bellwether Next a week ago that recent buying and selling have been “extremely volatile”. The bearish tone spooked the marketplace because it is at sharp contrast to September, when cooler temperatures shifted winter clothes and also the yearly back-to-school interest in uniforms drove an outburst in sales.
However, figures reveal that the sales momentum didn’t last in October as warmer weather dented shoppers’ enthusiasm for purchasing jackets, boots and scarves.
“October marked another turnaround of fortunes for retailers, reinforcing precisely how volatile consumer spend continues to be,Inch stated Paul Martin, mind of retail at KPMG. “Despite the positive picture recently, these latest figures is a real disappointment and never the beginning towards the golden quarter retailers had wished for.”
Based on the Met Office, last month was the joint eighth warmest October on record – equal with 2011. The Met’s data goes back to 1910. Mean temperatures over the United kingdom recently averaged at 11.3 levels centigrade, over a chillier 9.8 levels in 2016.
Earlier this month, Paula Nickolds, md of John Lewis, stated that “October will look pretty harsh for that market” mainly due to the elements.
John Lewis lately reported a 4.8pc slump in sales within the week to October 21, with fashion sales lower by 6.9pc.
“It isn’t a contraction from the market, it’s much more about the vagaries from the weather,” Nickolds said.
However, the slowdown in sales will fan fears that customers happen to be reining in spending as inflation creeps back to the market. Overall United kingdom retail sales fell by 1pc on the like-for-like basis, over a 1.7pc development in October.
“Real consumer spending power continues to be on the downward trend within the this past year because the acceleration in inflation is responsible for shoppers to get more and more careful in thinking about what purchases they are able to afford,” stated Helen Dickinson, leader from the BRC. “Many now face greater borrowing costs, given the increase in rates of interest, that will only actually heap further pressure onto household finances.”
Fresh figures from Barclaycard also implies that consumer spending growth slowed to two.4pc year-on-year recently. Market research of just one,669 adults demonstrated that more than one fourth stated the current rate of interest rise would place a dampener on Christmas spending plans.