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Clothing retail sales down in 13 of last 14 months

09 Dec '08
4 min read

Commentary:
Growth in non-food non-store sales slowed in November to a year-on-year gain of 9.5% from October's 16.6%. Thus they continued to outpace store sales, but the expansion is from a very low base, as non-food non-store sales account for only about 4% of total retail sales.

Shoppers are using the internet more this Christmas as they have become more confident about ordering online, trusting payment security and promised delivery dates and thus feeling more relaxed about ordering later.

Before buying, consumers are increasingly checking websites and catalogues to research purchases, in order to take advantage of widespread and heavy discounting, particularly for big-ticket items. Non-Food Non-Store sales are transactions which take place over the internet, or via mail order or telesales.

Sector performance (like-for-like sales):
Clothing:
The year-on-year decline in sales worsened further, with sharp falls in men's and women's far outweighing the small gain in childrenswear. Sales have now been lower than a year ago for 13 of the past 14 months: May's early sun drove the only gain achieved during this period.

Widespread discounts and special sales events continued but often failed to tempt customers unless they perceived value or really needed the product. The more discretionary fashion garments for adults were often left on the shelf as parents diverted spare cash to childrenswear and core essentials.

Accessories and smaller purchases often sold better than the more expensive items such as coats, suits and dresses. Hats, scarves and gloves were popular buys in the cold weather.

Footwear:
Despite extensive heavy discounting, sales fell back to show the largest year-on-year decline since July. Both men's and women's footwear were well down on a year ago, while children's – being seen as more essential than adults' – continued to hold up. As in previous months, women's was worse than men's.

The discounts and promotions as well as the cold weather helped boots and casual shoes and there were some early purchases of party shoes and sandals. The squeeze on discretionary spending continued to favour value lines, but designer ranges gave gains for some.

British Retail Consortium

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