In-store lifestyle, fashion sales volumes shrink YoY in Feb in UK: BDO

The latest report from the accountancy and business advisory firm shows that in-store sales in lifestyle and fashion categories were below inflation, meaning that actual sales volumes shrank in February compared to the same month last year.

This persistent poor performance not only reflects that consumers continue to hold back on non-essential spending in light of persistently high household and food costs, but points to the longer-term decline of the UK high street, a BDO release said.

Retailers faced particularly challenging conditions in store, with growth of just 1.2 per cent against a 2-per cent drop in the same month last year.

In-store fashion retailers registered no growth at all in February from a 8.2-per cent fall in February last year.

These worrying results reflect the continued struggle for retailers to entice shoppers out onto high streets and get them spending in stores, BDO noted.

“These results speak to the much reported and very concerning long-term decline in the UK high street. Retailers are struggling to justify investment in their store estates as consumers continue to move more online and spend less on discretionary items,” said Sophie Michael, head of retail and wholesale at BDO.

“Retailers have already been clear that they are planning to reduce capital investment in the next 12 months, exacerbating the fundamental challenges facing bricks-and-mortar retail—a sector that remains vital to local economies throughout the country,” she noted.

“The fashion sector—traditionally a cornerstone of UK high streets—appears particularly vulnerable as consumers understandably prioritise spending on essential items. Heavy discounting is required to drive sales in this category, which is a tough call for retailers that are already operating on razor-thin margins,” she said.

The coming months will be challenging for UK retailers, she added.

ALCHEMPro News Desk (DS)