Rising prices helped sales at UK clothing and footwear stores edge up in September, making this one of the few categories to buck an overall decline in total retail sales value and volume since August.
Clothing and footwear sales volume rose 0.9% in September compared with the month before, according to official figures from the Office for National Statistics (ONS), as total retail sales slipped 0.8%.
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By value, clothing and footwear sales climbed 1.2% month-on-month, whereas the total amount spent fell 0.5%.
It’s a similar picture for the year-on-year view, with clothing and footwear sales up 7.2% by volume and 10.7% by value, outpacing a total retail rise of 1.2% and 4.4% respectively.
The average store price for clothing and footwear has risen 3.3% over the last 12 months, the data shows.
The clothing and footwear sector has experienced growth in 2017, following periods of year on year declines in 2016. The increase in the quantity bought in this sector while prices continue to rise has resulted in strong year-on-year growth in the amount spent in store.
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By GlobalDataOverall, the underlying pattern in the UK retail industry appears to be one of growth; for the three-months on three-months measure, the quantity bought increased by 0.6%.
Likewise, store prices continue to rise across all store types and are at their highest year-on-year price growth since March 2012 at 3.3% (non-seasonally adjusted).
“September’s retail sales saw a monthly decline of 0.8%, reversing August’s growth,” explained Kate Davies, ONS senior statistician. “However, there is a continuation of the underlying trend of steady growth in sales volumes following a weak start to the year, and a background of generally rising prices. These increased costs are reflected in the more rapid growth in the amount spent when compared with the quantity bought.”
Online sales values increased year-on-year by 14%, accounting for approximately 17% of all retail spending. Year-on-year, online clothing and footwear sales grew 39.1% – accounting for 16.5% of all retailing sales.
“Consumers like the convenience of being able to shop for big name brands and niche labels all from the same online portal, as evident by the 40% growth in online sales of clothing and footwear this month,” notes Ian Geddes, head of retail at Deloitte.
He adds: “Retailers should look to capitalise on this trend and ensure that their supply chain models are robust enough to fulfil consumer demand from online marketplaces.”
Looking ahead, he also points out: “The prospect of the Bank of England raising interest rates for the first time in over 10 years next month could come at a challenging time for the retail sector.
“Issues around consumer finances, spending power and rising cost pressures are already challenging the industry: an interest rate rise could cause an additional headache for retailers in the lead up to Christmas.”
Separate research released today (20 October) based on Kantar Worldpanel purchase data also confirms British fashion sales have returned to growth – albeit marginally – after 14 months, as shoppers appear to be more willing to buy items at full price.
Full-price fashion sales help drive UK market growth
