The latest data on the back-to-school market reveals unexpected shifts in consumer behaviour in the UK.
- Families are increasingly opting for second-hand goods, leading to a 1.7% decline in non-food sales compared to last year.
- In contrast to the overall decline, online sales experienced a modest growth driven by bargain hunting.
- Despite the challenges, sports and travel equipment sales received a welcome boost during the summer.
- Economic outlooks, including potential tax changes, play a crucial role in shaping this market trend.
The recent back-to-school sales season has unearthed surprising consumer tendencies, with families showing a preference for purchasing second-hand items. This trend has resulted in a 1.7% decrease in non-food sales over the three-month period ending 24 August. Such a decline surpasses the 12-month average drop of 2%, highlighting a notable shift from previous years.
Not all areas of retail have suffered equally; online shopping platforms have seen a 1.5% increase in sales in August, compared to the average decrease of 1.7% for the same month in 2023. This turnaround is attributed to consumers’ pursuit of bargains, a sentiment that bolsters the growth against a backdrop of a broader market decline.
Interestingly, the back-to-school season has stimulated a surge in computer and laptop purchases among university-bound students. However, traditional categories like clothing and footwear have underperformed as many families continue to favour second-hand options. Helen Dickinson, the chief executive of the British Retail Consortium, acknowledged these weaker sales trends in common back-to-school categories.
Linda Ellett from KPMG noted that while fashion retailers hope for continued growth to clear summer stock, there is cautiousness amidst potential tax increases. She indicated that while consumer sentiment is gradually improving, uncertainties remain as the market braces for the Autumn Statement. This pivotal fiscal event, slated for 19 October, presents an opportunity to address longstanding issues in the business rates system, as highlighted by Dickinson.
With the retail landscape grappling with the effects of a challenging summer and the imminent possibility of reduced consumer spending due to rising energy bills, there is heightened anticipation for the Chancellor’s Autumn Budget. Decisive fiscal measures are viewed as essential to stimulate investment and maintain economic stability moving forward.
The landscape of the back-to-school market underscores evolving consumer preferences and the pivotal influence of economic policies.
