British retail recorded a moderate but positive development in September. The overall sales in the cyclical consumer goods categories, including fashion, household goods and lifestyle, rose by 3.1 percent. This growth comes before the crucial trading period of the ‘Golden Quarter’. It offers a careful optimistic view, despite a strong comparison basis from September 2024.
The shops in the shopping streets were an essential engine of this growth. Inpatient sales rose by 3.7 percent compared to the same month last year. This is one of the highest values this year and builds on a positive August. It indicates a renewed interest in physical shopping experiences for categories such as fashion. Consumers: Inside, the inpatient shops seem to return to look at clothing and buy. This may be due to the change of season and the desire to try on articles.
However, the online business was more restrictive. Sales rose only by three percent compared to an increase of 11.6 percent in September 2024. Although still positive, this slower online growth, especially in fashion, indicates a realignment of the shopping habits of consumers: inside between physical and digital channels.
Despite these positive sales figures, Sophie Michael, Head of Retail and Wholesale at BDO, indicates an important reservation. The growth rate is still under inflation. This means that the sales volumes have actually dropped compared to the previous year. This “growth of expenses for cyclical consumer goods remains under inflation” has a direct effect on the fashion industry. Consumers: Maybe fewer articles buy on the inside, even if the value of sales increases due to higher prices.
Michael warns that “consumers: inside will tackle their spending decisions with caution”. You could strap the belt closer for articles such as fashion, in favor of vital and luxurious foods because Christmas is approaching. Dealers: Inside, it is advised to strategically control this time with advertising campaigns and careful pricing. In this way you can avoid excess stands and protect the margins in the new year.
This article was used with digital tools translated.
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