Blog: 2010 outlook as chilly as the weather
Leonie Barrie | 13 January 2010
More robust Christmas trading figures out today from Matalan and N Brown seem to support yesterday’s statement from the British Retail Consortium that December’s sales were “stronger than we dared hope for.”
In fact, wintry weather provided such a boost to UK clothing and footwear sales last month that they helped lift total sales to a five-year December high.
So why is it that the outlook for the sector in 2010 seems so bleak – perhaps even as challenging as 2009?
A look behind the headlines shows the results were undeniably flattered by strong comparisons with last December's dire results, when sales fell 3.3% as the economic downturn reached fever pitch.
But fear seems to have played a major role too, with shoppers undoubtedly worried about what the year ahead might hold. Many will have boosted December’s numbers by bringing forward planned purchases ahead of the VAT rise on 1 January.
And even without a crystal ball it’s possible to predict with some certainty that the spectre of higher taxes in the year ahead is set to pressure consumer spending even further. No matter which party takes office in the upcoming General Election, the bill for the banking crisis in the UK is sure to lead to tax hikes.
There also remains the prospect of rising fuel prices later in the year, a likely freeze on public sector pay, uncertainties on job prospects and a continued tight credit market – making for an environment where consumers will hardly be awash with cash.
All of which combines to mean “a healthy December may be only a temporary respite on the painful road to recovery.”
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
- Digitalisation and data to disrupt supply chains
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- What TTIP might mean for US, EU textiles & apparel
- Geo-political uncertainty and how to survive it
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Levi Strauss and ILO probe Cambodia factory death
- Next books first FY profit fall in eight years
- Big data to help US firms improve clothing fit
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing