June sees a rebound in retail sales, yet fashion continues to underperform.
- Overall retail sales in June experienced a growth of 3.2%, fuelled by significant gains in online shopping despite tepid in-store results.
- In stark contrast to lifestyle and homeware, the fashion sector showed minimal improvement, with a slight overall increase of just 0.9%.
- Fashion retailers face ongoing challenges with in-store sales, marking ten consecutive months of negative growth in this area.
- A government plan has been introduced to revitalise high streets, aiming to attract more consumers to town and city centres.
Retail sales in June showed a commendable growth of 3.2% compared to the same period in 2023. This was notably the strongest since August the previous year. While this growth was seen across the board, the fashion sector did not keep pace with other categories, such as lifestyle and homeware.
The primary driver for this growth was online sales, which surged by 9.8%. This substantial increase helped counterbalance the relatively weak in-store sales, which only grew by 1.8%. For the fashion segment, while online sales rose by an encouraging 9.9%, the overall sector advanced by a modest 0.9%, trailing behind other retail categories.
Fashion retail, particularly in physical stores, continues to grapple with declining sales, recording a 6.7% drop in June. This marks the tenth consecutive month of negative growth for in-store fashion retail. BDO’s head of retail and wholesale, Sophie Michael, pointed out, “Despite strong growth in online sales, the performance on the high street continues to be very disappointing.” Her statement underscores the sentiment within the sector regarding the persistent challenges faced by brick-and-mortar fashion retailers.
In comparison, homeware and lifestyle sectors demonstrated stronger performances, with increases of 3% and 7.5%, respectively. These figures highlight the divergence within the retail market, where certain sectors manage to thrive despite broader challenges.
In response to these ongoing difficulties, the government has announced a new initiative aimed at revitalising the high streets. The five-point plan proposed is intended to draw consumers back into urban shopping areas, which many in the industry hope will provide much-needed support for the struggling fashion sector.
The fashion retail sector continues to face challenges amidst wider retail recovery efforts.
