Sales up, but not in fashion

UK retail sales were up 3.1% on a like-for-like basis, compared with January 2006, when sales had risen only 0.2% after a strong Christmas. In fashion, overall sales were slightly down on a year ago. Womenswear was the weakest since June, as sales slowed from December to show no growth on a year ago. Menswear also slowed though remained just positive, but childrenswear fell further below year-earlier levels. The mild weather adversely affected heavy knits and coats - apart from some good sales of young fashion coats - but outerwear, knitwear and warm accessories picked up on cold snowy days. Clearance sales were generally successful, albeit often with heavy discounts. Dresses, especially shorter styles worn with jeans or leggings, sold very well, but trousers and casual jackets struggled. Handbags and jewellery slowed after a Christmas boost. Men's suits did well in the sales and in promotions, while shirts and casualwear were more difficult.

Department stores sales growth was mixed, with some resorting to heavy discounts to achieve clearance, particularly on home and leisure. Womenswear, accessories and beauty often outperformed menswear. Helen Dickinson, Head of Retail, KPMG comments “Not a bad set of results on the face of it, with like-for-like sales in January being 3.1%, the highest monthly increase since July 2006. However, it merely reflects the continuation of the trend which we saw in December, whereby it was only strong sales late in that month that gave many retailers something to cheer about over Christmas. It also comes on the back of a weak performance in January 2006.

www.kpmg.com
8 February 2007

Massive price cuts follow mixed sales

In the aftermath of Christmas, retailers in both the UK, Europe and the US have resorted to massive price cuts. Sales in the run up to Christmas had been mixed at best. Some British retailers, including John Lewis, reported better-than-expected sales in the days leading up to Christmas, while many businesses in the US suffered slow sales.

The heavy price cuts have attracted shoppers in droves. Shoppers started queuing at 3 am on Oxford Street, waiting to get into Selfridges to bargain hunt. Meanwhile, Macy’s in New York opened at 7am, with discounts of up to 75 percent. The slowdown in sales in the US was blamed mostly on the warm weather, which affected the sale of winter fashion, and on a challenging housing market. In contrast, German retailers have reported buoyant Christmas sales.

27 December 2006

Surge in secret sales

Dozens of retailers are secretly and unofficially discounting prices in the run up to Christmas by emailing thousands of discount vouchers to potential customers, without advertising them as ‘sales'. The marketing ploy has been used from stores ranging from Selfridges to the shops on Carnaby street, with discounts being mailed to a limited number of people, as a ‘secret' discount. Stores such as Habitat, Gap and Miss Selfridge distributed coupons inviting shoppers to take advantage of discounts of between 20 and 40 per cent in the run-up to Christmas.

Running similar promotions are Next, Oasis, Japanese store Muji, Dorothy Perkins and Kurt Geiger, The number of promotions will add to fears that the festive season could be one of the worst on record for the nation's shopkeepers. In similar vain, brands such as Christian Louboutin, Burberry and Mulberry are Kevin Hawkins, director-general of the BRC, confirmed that many stores are already slashing prices as the festive season begins. 'There's more discounting than last year going on at this stage. One of the problems has been the clothing sector, because it's been so mild,' he said. 'This is my 17th or 18th Christmas in retail and I don't remember one that was easy - and the last few years have all been challenging in one way or another.' The BRC is expected to say this week that sales edged up only slightly in November, echoing a downbeat survey of the retail sector from the CBI.

4 December 2006

UK September sales dip

High street sales dropped 0.4 percent in September, causing alarm over the strength of consumer spending. Analysts had expected sales to rise 0.3 percent, and blamed a rise in utility prices, less discounting and higher interest rates for the downturn. Despite overall results being 3.8 percent higher than 12 months ago, the Centre for Economics and Business Research (CEBR) lowered the rate of annual retails sales growth from 4.4 percent in August to 3.2 percent. Consumers are believed to be cutting back drastically following higher spending during the World Cup and the August bank holiday. New data has also shown that mortgage lending is experiencing a slowdown, due to the threat of interest rate increases. However, the CEBR does not believe the decline in sales will continue, with consumer spending generally on the upswing. More likely, utility costs and rising unemployment on the one hand and economic growth on the other will result in more volatility in monthly retail sales than last year.

www.cebr.com
20 October 2006

February retail sales rise

Retail sales continued to rise for the fourth consecutive month in February. The British Retail Consortium said that like-for-like sales rose 0.6 percent in February, compared with the same period the year before. Sales climbed 0.2 percent in January. Total sales, which include all floor space, rose 3.5 percent, up marginally form 3.4 percent in January.

The BRC said floor space was growing, based on a growth rate for total sales up to 4.2 percent, but director general Kevin Hawkins warned: “These results underline yet again the continuing squeeze on consumer spending and, contrary to the Bank of England's expectations, there is no sign of an upturn.” Department store sales picked up during the month, which the BRC said was thanks to Valentine's Day. Leisure goods also showed some growth, but clothing sales remained generally flat. Growth in household spending, of which retail sales make up less than half, grew at its fastest rate in a year at the end of last year.

7 March 2006

Retail sales below average

Retail sales remained down on a year ago in February, dashing hopes of stability after last month's post-Christmas fall, according to the CBI's Quarterly Distributive Trades Survey, published this week. The survey also recorded the sharpest fall in employment in its 22-year history, a result of the poor retail climate through most of the past year. Survey responses show that 40 per cent of retailers said sales volumes were down on a year ago and only 22 per cent said they were up. The negative balance of minus 18 per cent compares with minus 11 in January. A further, more modest decline is expected in the year to March.

Sales were regarded as below average for the time of year, although to a lesser extent than in the previous month. The balance of minus 19 per cent was also significantly less negative than the average for the second half of 2005. Looking ahead, sales are expected to improve in relation to the seasonal average, although remaining below normal.

Business optimism has improved since the last quarterly survey in November, when it was the weakest in the survey's history. Retailers expect the business situation to be broadly stable over the next three months.

Employment in retailing has been on a declining trend for the past two years following several years of expansion, but in the year to February it fell at the sharpest rate in the survey's history. Thirty-seven per cent of firms reported a fall in jobs while only 11 per cent reported a rise. The negative balance of minus 26 per cent compares with minus 15 per cent in November's quarterly survey. Jobs are expected to remain similarly down on a year ago in March.

On a more positive note, prices stabilised in the year to February after falling in the previous five quarterly surveys. Retailers expect prices to remain stable into March. Falling sales led to a reduction in the volume of orders on suppliers. The decline in orders is expected to continue over the year to March, although at a slower rate.

28 February 2006

Liberty reports encouraging results

London department store Liberty last week announced a rise in sales of 5.4 percent during the six weeks to Christmas. The results were helped by strong sales of cosmetics, women's accessories, jewellery and men's wear. In a statement, the department store said that it had enjoyed one of its “best performances” in the week before Christmas. Sales in that week soared 20.4 percent compared with the same period the year before. The first week after Christmas sales were up 3 percent on last year.

“Our retail trading performance through Christmas has been very encouraging, all the more so in light of the post-July trading climate which has made London 's West End a challenging retail environment,” said chief executive Iain Renwick. Retailers experienced mixed results during the Christmas period. Some experienced rises in sales during the run-up to the holiday. Privately-owned John Lewis, generally perceived to be the industry's barometer, reported a 7.1 percent rise in sales in the 7 weeks ended 7 January.

“Although we view the year ahead with some caution, we will be completing the consolidation of our retailing activities into the iconic Tudor building by April 2006,” he continued. “While this is expected to reduce headline gross sales figures slightly, we are confident of the positive effect that this will have on both sales densities and profitability over the full year.” Liberty said the rise in sales reflected last year's launch of its new luxury goods brand Liberty of London and its position as a destination shopping venue. It refuted the suggestion that the positive results were a result of aggressive discounting. Broker Seymour Pierce told the Financial Times that it was “a good performance”, taking into account the amount of discounting taking place in the high street. “ Liberty , we believe, because of its shift in mix towards own label merchandise, particularly the Liberty of London luxury collection, will have seen an increase in gross margin over the period.”

www.liberty.co.uk
16 January 2006

November sales better than expected

There has been an unexpected pick-up in retail sales, which rose in November for the first time in eight months. Figures to be released by the British Retail Consortium and KPMG this week will reveal that like-for-like sales grew by around 0.3 per cent last month compared with last November.

The BRC's monthly figure was last in positive territory in March. The figures will be welcomed by retailers who feared a pre-Christmas meltdown and fly in the face of last week's survey from the CBI which suggested that November was the high street's worst month for 22 years.

CBI predicts heavy sales slowdown

The Confederation of British Industry released a report on Friday revealing a heavy slowdown of sales. The figures for November and the prognosis for December are the worst in the organisation's 22 year old Distributive Trades Survey. Of the retailers questioned for the survey, 51 percent said that sales volumes for November were down from last year, with only 17 percent saying the opposite. Retailers are hoping for a better December, with Christmas boosting consumer spending. However, a record sales decline is expected for this year. Thirty-eight percent of retailers expects sales to drop compared with last year, with only 15 percent expecting a rise, a balance of minus 23 percent.

“Any hopes retailers had of an early Christmas present have been dashed,” executive director of Asda and chairman of the CBI's DTS Panel, John Longworth, told the FT. “Consumers have been extremely reluctant to spend money, and shops will be crossing their fingers that the predicted cold spell and the rapid approach of Christmas drives people through their doors and gets the tills ringing.”

www.cbi.org.uk
4 December 2005

Republic in possible sale

British clothing retailer Republic is in talks with Change Capital Partners about a possible sale. Change Capital is the buyout firm founded by former chairman and chief executive of Marks & Spencer, Luc Vandevelde. Republic could sell for as much as £100 million. The West Yorkshire-based company, which is backed by private equity firm 3i, carries various fashion brands in stores, including Replay, G-Star and FCUK, as well as its own Republic range.

The company has, which was founded in 1985, 60 stores in the UK. Another former chief executive of M&S, Roger Holmes, who now works at Change Capital, is believed to be involved in the strategic development at Republic.

www.republic.co.uk
29 September 2005

High Street sales at 6 year low

Retailers are braced for more bad news this week as industry figures have showed already that high street sales had fallen to a six year low. The BRC's monthly snapshot of the high street is expected to show that spending fell about 1.5% against the same period a year ago. July is typically a strong month because of summer discounting and the start of the school holidays.

Dr Tim Denison, head of retail traffic monitor SPSL said “there is now a developing sense that consumers in the UK are becoming ‘shopped out'. No matter how cheap the goods, people are begging to think “enough is enough”

8 August 2005

Retail Sales Growth Rate Highest In June

In June the underlying rate of growth in retail sales volumes was the highest so far this year, while annual growth remained the lowest for more than six years, according to data out today from the Office for National Statistics. The volume of retail sales in the three months April to June 2005 was 0.7 per cent higher than in the previous three months, the highest such growth since November 2004. This follows growth of 0.3 per cent in the three months to May and compares with growth of 2.0 per cent at the same time in 2004.

Analysis of monthly figures shows that the total sales volume grew by 1.3 per cent between May and June, the highest single month growth since December 2003. This follows zero growth last month and 0.5 per cent in April. According to retailers the growth in June was driven by some department stores moving summer sales from July to June, a pick-up in sales of summer fashions and strong sales of sportswear. The total volume of sales in June was 1.6 per cent higher than in June 2004.

For the three months to June the unadjusted value of retail sales was 0.4 per cent higher than in the same period a year earlier, the lowest growth since comparable records began. Average weekly sales in June were £4.7 billion, 1.4 per cent higher than a year ago. The largest falls in sales values over the year were for household goods stores and department stores, with decreases of 4.0 per cent and 1.7 per cent respectively.

23 July 2005

Secret Sample Sale

The opportunity to revel in designer duds is just around the corner and not to be missed. The British firm Secret Sample Sale has organised a sample sale at the Old Truman Brewery in Brick Lane, London which starts today and closes on Sunday 10 July.

With an entrance fee of a mere £1, shoppers can purchase designer items at up to 80 per cent discount. Amongst the countless labels available are Juicy Couture, Diane von Furstenberg, Cacharel, Paul & Joe, Gharani Strok, Preen, Roland Mouret, Marc Le Bihan and California.

Secret Sample Sale has been operating since December 2003, bringing together designers, fashion agencies and retailers to help clear their samples and excess stock. The venue is Atlantis Bridge Gallery , The Old Truman Brewery, 146 Brick Lane E1. You can shop from 12 to 7pm daily. For queries during the sale call 0208 348 1987 or email secretsamplesale@hotmail.com.

7 July 2005

High Street on sale early

A number of high-street fashion chains have opted to go on seasonal sale early this year in a bid to shake shoppers out of their torpor and shift summer stock. Bargain-conscious consumers have been anticipating keen discounts because a combination of poor weather and, in some cases, mis-judged fashion lines has left stores such as Zara, Mango, House of Fraser, Hennes and Debenhams concerned that they may have too much unsold stock.

27 June 2005

Sample Sale Horror

We all know the song "The Lady is a Tramp". It is remarkable how well this applies to normal, sane individuals like you and I when the words 'sample sale' come into play. All of a sudden, all good behaviour is thrown out the window and we turn into savages. It seems that we will do just about anything to get our hands on that coveted Chanel bag or Jimmy Choo pump. Just how bad does it get? Here are a few hair-raising examples of good girls gone bad.

At one Marc Jacobs sample sale, a PR-executive was trying to purchase a bag. "One hundred people were crowded around a four-foot-wide table-security actually had to break everyone up. I was trying to purchase a bag I was holding and some lady grabbed the bag out of my hands saying, 'That is the one I WANTED!' I was totally shocked!"

Some women actually bring their own clothes racks with them and fill them to the brim with clothes and shoes. It's like one of those 'all you can eat' buffets, where some people pile on the food. No one likes a pig.

Scenarios can get ugly, with women screaming profanities at one another, simply to get closer to the items. Lying also seems to be a favoured method to beat the competition. "In the line to get in, this one woman told everyone that the sale was awful so that they would leave and she could move up. She even told the police officers who were there that everyone after a certain point would not make it and told the officers to spread the news, which they did," recalls one woman of a Jimmy Choo sale.
Another sale offender tried a different, but equally loathsome, tactic. Her victim, a PR coordinator, recalls: "I was looking in the mirror to see how a jacket looked on me and some woman said, 'That jacket really doesn't suit you. It makes you look heavier than you are.' I was insulted a little but appreciated her honesty. Then, to my amazement, the second I took off the jacket, she grabbed it and ran to buy it for herself. I later overheard her saying to her friend that the jacket looked great on me but she just wanted it for herself!" All's fair in love and sample sales?

22 February 2005

Bargain-hunters Flock To Sales

The number of bargain-hunters visiting the sales is up on last year, according to figures published by analysts. FootFall said the number of people in key shopping centres across the country over the final days of 2004 was 2.1 per cent above the equivalent days in 2003. The figures record only how many shoppers are out and about and not how much they are spending.

Sheelah Turner, marketing information analyst at FootFall, said in The Scotsman: "The increase is encouraging, indicating that shoppers still have the intention to spend. We know, however, from the pre-Christmas trading that shoppers are savvy bargain-hunters."

4 January 2005

Pound may gain with increased retail sales

The pound may gain against the euro on expectations a report will show retail sales increased in November, adding to speculation the Bank of England may not have finished raising its benchmark interest rate.

Retail sales may have gained 0.2 percent in November, after declining 0.4 percent a month before, according to the median forecast of 33 economists. Annual sales may have risen 5.7 percent. The government report will be released today at 9:30 a.m. in London. The U.K. central bank has raised rates five times since November 2003 to curb inflation.

16 December 2004

Get ready for the sales

The countdown to buying those pieces you've been eyeing all season, but couldn't afford has started. Madeleine Press has a selection of delicious knitwear at 30 per cent discount and if you can't afford designer gear, the high street is full of bargains already. Liberty is starting their sale on the 27th. Expect to queue and fight for those Mulberry handbags.

15 December 2004

Christmas sales boom

Analysts are forecasting a Christmas sales boom in the High Street despite the latest downbeat retail figures. Improving consumer confidence and a 4.8 per cent rise in incomes in the past year are the key factors, say City economists.

12 December 2004

Retail sales drop

For the month of September retail sales fell to their lowest point in 1 ½ years. The Confederation of British Industry stated that 38% of retailers had reported a decline in year-on-year sales, with only 29% reporting a rise. With analysts having expected a balance of +15% this balance of -9% was a first since the war in Iraq broke out. Studies showed that consumer confidence has dropped to an all time low since 1 ½ years. Retailers also reportedly have less confidence in the future, with a majority expecting lower sales.

Ian McCafferty, the CBI's chief economic advisor, has pointed out that along with waning interest due to the weather, these new numbers showed a more fundamental slow-down was taking place. The Bank of England has focused on curbing consumer spending but McCafferty advises putting interest rates on hold. Rising interest rates would only be detrimental to the current retail climate.

www.reuters.co.uk
29 September 2004

High Street Slump Makes For Early Sales

In the past two weeks UK High Street fashion retailers have seen a slump in sales, with some shops experiencing a fall into "significant negative territory" for the past seven days. The chief executive of one well-known womenswear chain told The Sunday Telegraph the week's sales could be 20 per cent lower than they were three weeks ago. The slump has prompted many retailers to start their summer sales early.

29 June 2004

Summer Sale To Soar

Record summer sales are being launched, with stores offering huge discounts in an aim to win back shoppers who are worried about housing market and rising interest rates. With stores such as Harrods expected to slash designerwear prices by 50 per cent, Londoners are in for a real bargain this summer.In the next few weeks, dozens of major London stores will start what is expected to be one of the most competitive summer sales seasons ever. A spokesman for the British Retail Consortium told ES: "The recent hot weather has created a feelgood factor and people are spending on themselves, which bodes well for the summer sales.

A spokesman for the London Chamber of Commerce said: "We're anticipating a robust and healthy sales period. Shoppers are shrugging off the recent interest rate rise and continuing to spend freely. Even so, they are being quite selective and shops will have to work hard to draw them in by offering well-priced, well-targeted products."

Trading this year is already better than last when the Central line closure and war in Iraq took their toll. But stores say the congestion charge continues to present them with a challenge. According to the Regent Street Association, customer numbers are down - but those who do come into central London are "serious shoppers rather than browsers".

24 June 2004

Treasure The Sales

The sales are on and comprehensive guides to the season's best bargains are to be found everywhere. While most of our summer wardrobe may not as yet have seen the light of day, there are some great treasures to be found this season, which can easily become staples in your wardrobes and complement the autumn trends. The trick to hunting out the best treasures is having a cool eye for bargains that can take you to next season and beyond. This should not be too difficult a task, in what some are calling the best sale in years.

The challenge to shopping the high street is that they are so adept at reproducing trends that most of their offer seems out of fashion by the time the sale have started. Nothing could be further from the truth, however. The 20s and 50s look is still very much relevant next season, as are vintage, tweeds and Chinoiserie. If you have the patience to track down those pieces that can keep in your wardrobe, you will be smiling for months.

When shopping, be inspired by Tom Ford's last collection for Yves Saint Laurent, an ode to YSL's Opium collection in 1977. Think Imperial China, sumptuous satin and ethnic prints. Think too of Gaultier's debut at Hermes and Chanel tweeds, as a lightweight tweed jacket can complement a printed dress or be worn casual with jeans tucked in boots.

Bargain accessories can work for seasons to come also, as trends such as embellished accessories, gold and silver trinkets and vintage style bags in quirky colours are carried through to autumn. Chloe's bags were a hit this summer and if you can find one in the sale it will look fantastic with the bohemian chic trend next season. For classics head to Mulberry for beautiful totes in white and brown. To brighten any look for fall - or even those dark summer days when the weather turns sour - a Missoni scarf, in accentuated zigzag colours, will be a wardrobe favourite for months to come.

Happy hunting!

24 June 2004

UK Sales Growth Rate Slowing Down

The latest British Retail Consortium/KPMG Retail Sales Monitor shows the three-month growth rate down from 2.6 per cent in March to 1.7 per cent in April for like-for-like sales, and from 5.9 per cent to 4.8 per cent for total sales. The BRC said year-on-year comparisons were still artificially boosted by the weak April 2003, when trade was hit by the Iraq war though to a lesser extent than in March.

Cooler weather this April also hit sales, particularly those of lighter clothing, sandals and gardening products. In contrast, Easter boosted sales of perfumery, home accessories and flowers. In clothing, womenswear was generally stronger than menswear, though some men's designer styles sold well Footwear sales also showed some improvement, but were adversely affected by the poor weather in the first part of the month.

11 May 2004

Whistles Set For 2m Profits

Whistles is expected to turn in profits of GBP2m by January next year, according to parent company Karen Millen, which filed accounts for both brands at Companies House last week. For the 53-week period ended February 2 2003, Whistles broke into profit for the first time in three years. It reported pre-tax profits of |GBP255,773 against losses of GBP961,873 for the 52-week period ended January 27 2002.

This year the product has seen a return to its high standards and sales have a complete turnaround from the spring season. With an encouraging autumn period so far, Whistles is up double digits on like-for-like sales within Harvey Nichols and Selfridges. Group finance director Sanjay Sharma stated Karen Millen would continue to expand both in the UK and overseas next year.

8 December 2003

Sales Slow For Christmas

UK retailers are seeing a slow build up to Christmas, with sales growth in the first half of November below expectations.

However, stores expect trade to pick up in December, according to the CBI's quarterly survey. Retailers said sales were modestly below average for the time of year but expectations remain strong, suggesting December's sales volumes should be higher than a year ago.

4 December 2003

Early Sales Depress Winter Season

As the sale period nears, retailers should be taking note of the weather. If the torrential rain and high winds of the past two weeks are anything to go by, the British are in for a long and depressing winter.

The crazy situation the fashion retail industry has allowed itself to get into, with selling seasons hopelessly out of sync with our climatic reality, has been highlighted this week with the generally downbeat reports of current trading. The annual sale before the Christmas tree has been decorated seems particularly inappropriate this year.

Nothing is going to change, of course. The fashion business sometimes appears to be a runaway train, with no one at the helm. The arguments about cashflow, factories' manufacturing cycles, consumers who want to buy next season's goods early, etc, will be colliding with grim weather in January, February and March.

The proliferation of pre-Christmas Sales is rather worrying. Debenhams' recently had a three-day fashion spectacular and Allders last week extensively promoted a done-day sale, with "up to 50 per cent off fashion." With less than four weeks before Christmas and retailers promoting half-price sales, these are not signs of a healthy retail market.

1 December 2003