Latest news with #SophieMichael
Fashion Network
4 days ago
- Business
- Fashion Network
As shoppers cut discretionary spend, May retail sales disappoint
Five months of positive sales came to an end in May with the latest BDO High Street Sales Tracker on Friday showing that total like-for-like discretionary sales fell by 1.2%. In-store sales all-but-flatlined with just a 0.5% increase, failing to keep up with inflation, while online sales dropped by 3.1%, highlighting a substantial drop in volumes. The overall monthly fall of 1.2% was in sharp contrast to a 2.3% increase this time last year with BDO saying that the decline was driven in part by that fall in non-store retail sales. This was the first negative result in e-sales since March 2024, outside of Black Friday in November last year. All discretionary categories saw poor performances in May. Indicators were well below inflation, suggesting that retail businesses are feeling the bite of the cost increase in their overheads. Overall fashion sales were down 2% from a base of a 5.6% a year ago, the latest drop being largely due to a significant downturn in fashion sales online, which fell by 4.5% compared to the same month last year. Elsewhere, the homewares sector saw sales fall by 3.1% from a negative base of 2.6% in May 2024. It was also the third consecutive month of negative online homewares sales (-10.8%). Sophie Michael, head of retail and wholesale at BDO, said it was a 'hugely disappointing set of results for the retail sector as we head into the summer months. Retailers have been predicting the inflationary cost challenges for some time and, unfortunately, we're now seeing them have a real impact. 'The steep fall in non-store sales shows just how difficult it has become for retailers to offer the big discounts that typically drive online sales. With mounting cost pressures from inflation, higher wages and increased operating costs, many are simply unable to cut prices on their products. As a result, volumes are down across every category and channel, with both in-store and non-store sales falling well below the rate of inflation on a like-for-like basis, while the absolute growth figure in online even falling into negative territory.' She added that National Insurance changes, increases to the National Living Wage, packaging tax and higher business rates are 'all bedding in now. At the same time, consumer confidence has dropped to its lowest level in five years, with people pulling back on discretionary spending'.
Fashion Network
4 days ago
- Business
- Fashion Network
As shoppers cut discretionary spend, May retail sales disappoint
Five months of positive sales came to an end in May with the latest BDO High Street Sales Tracker on Friday showing that total like-for-like discretionary sales fell by 1.2%. In-store sales all-but-flatlined with just a 0.5% increase, failing to keep up with inflation, while online sales dropped by 3.1%, highlighting a substantial drop in volumes. The overall monthly fall of 1.2% was in sharp contrast to a 2.3% increase this time last year with BDO saying that the decline was driven in part by that fall in non-store retail sales. This was the first negative result in e-sales since March 2024, outside of Black Friday in November last year. All discretionary categories saw poor performances in May. Indicators were well below inflation, suggesting that retail businesses are feeling the bite of the cost increase in their overheads. Overall fashion sales were down 2% from a base of a 5.6% a year ago, the latest drop being largely due to a significant downturn in fashion sales online, which fell by 4.5% compared to the same month last year. Elsewhere, the homewares sector saw sales fall by 3.1% from a negative base of 2.6% in May 2024. It was also the third consecutive month of negative online homewares sales (-10.8%). Sophie Michael, head of retail and wholesale at BDO, said it was a 'hugely disappointing set of results for the retail sector as we head into the summer months. Retailers have been predicting the inflationary cost challenges for some time and, unfortunately, we're now seeing them have a real impact. 'The steep fall in non-store sales shows just how difficult it has become for retailers to offer the big discounts that typically drive online sales. With mounting cost pressures from inflation, higher wages and increased operating costs, many are simply unable to cut prices on their products. As a result, volumes are down across every category and channel, with both in-store and non-store sales falling well below the rate of inflation on a like-for-like basis, while the absolute growth figure in online even falling into negative territory.' She added that National Insurance changes, increases to the National Living Wage, packaging tax and higher business rates are 'all bedding in now. At the same time, consumer confidence has dropped to its lowest level in five years, with people pulling back on discretionary spending'.
Fashion Network
4 days ago
- Business
- Fashion Network
As shoppers cut discretionary spend, May retail sales disappoint
Five months of positive sales came to an end in May with the latest BDO High Street Sales Tracker on Friday showing that total like-for-like discretionary sales fell by 1.2%. In-store sales all-but-flatlined with just a 0.5% increase, failing to keep up with inflation, while online sales dropped by 3.1%, highlighting a substantial drop in volumes. The overall monthly fall of 1.2% was in sharp contrast to a 2.3% increase this time last year with BDO saying that the decline was driven in part by that fall in non-store retail sales. This was the first negative result in e-sales since March 2024, outside of Black Friday in November last year. All discretionary categories saw poor performances in May. Indicators were well below inflation, suggesting that retail businesses are feeling the bite of the cost increase in their overheads. Overall fashion sales were down 2% from a base of a 5.6% a year ago, the latest drop being largely due to a significant downturn in fashion sales online, which fell by 4.5% compared to the same month last year. Elsewhere, the homewares sector saw sales fall by 3.1% from a negative base of 2.6% in May 2024. It was also the third consecutive month of negative online homewares sales (-10.8%). Sophie Michael, head of retail and wholesale at BDO, said it was a 'hugely disappointing set of results for the retail sector as we head into the summer months. Retailers have been predicting the inflationary cost challenges for some time and, unfortunately, we're now seeing them have a real impact. 'The steep fall in non-store sales shows just how difficult it has become for retailers to offer the big discounts that typically drive online sales. With mounting cost pressures from inflation, higher wages and increased operating costs, many are simply unable to cut prices on their products. As a result, volumes are down across every category and channel, with both in-store and non-store sales falling well below the rate of inflation on a like-for-like basis, while the absolute growth figure in online even falling into negative territory.' She added that National Insurance changes, increases to the National Living Wage, packaging tax and higher business rates are 'all bedding in now. At the same time, consumer confidence has dropped to its lowest level in five years, with people pulling back on discretionary spending'.
Fibre2Fashion
05-05-2025
- Business
- Fibre2Fashion
UK retail sales rise 3.7% in April, high street recovery stalls: BDO
UK total retail sales in discretionary spend categories grew by 3.7 per cent in April, driven primarily by growth in online sales, as brick-and-mortar stores suffered another challenging month, according to BDO. Retailers across the region continue to struggle to drive consumer spending on the high street, with sales in-store increasing just 2.3 per cent, compared to a negative base in April 2024 of -1.7 per cent. Not only does this mean that in-store sales have barely recovered from last year's poor performance, but it also means that actual sales volumes shrank, as this is once again below the rate of inflation, as per BDO's 'High Street Sales Tracker'. UK retail sales in discretionary categories rose 3.7 per cent in April, led by online growth, while in-store sales increased only 2.3 per centâ€'below inflation and still lagging 2024 levels, as per BDO. Lifestyle and homewares underperformed, while fashion saw limited recovery. BDO warns that economic uncertainty, tariff concerns, and shifting consumer habits continue to pressure high street retailers. The lifestyle and homewares sectors recorded particularly poor performances in-store. In-store sales declined -1.2 per cent in the lifestyle sector, with in-store sales in the homeware category growing just +0.9 per cent compared to a negative base of -1.5 per cent in the same month last year. The warm weather during April provided a boost for fashion sales but stores still struggled to capitalise on this. Sales in-store grew by 5.2 per cent, but this is against a base of -8.3 per cent in April 2024, meaning that the category has failed to recover from this poor performance. 'While April's results may initially appear positive, it was a month boosted by warm weather and seasonal events such as Easter and school holidays, which typically help to drive consumer spending. It's clear that there is a cloud of uncertainty around economic issues such as the introduction of trade tariffs and cost increases, which has had a material knock-on effect on consumer confidence and their willingness to spend,' said Sophie Michael , head of retail and wholesale at BDO . 'When household finances are under pressure, consumers will understandably reduce their spending in discretionary categories like homewares and lifestyle and prioritise spending on experiences with family and friends. While online retailers are still managing to record sales growth, high street stores are really struggling to get shoppers through the door,' added Michael. 'The high street is at real risk of being hollowed out if retailers can't find a way to entice shoppers back into stores. Alongside the squeeze on the consumer purse, there has been a shift in purchasing behaviour and there is increasing competition for discretionary spend. Retailers need to look at how they invest in new tactics—for example embracing trends like the growth of pre-loved fashion and the circular economy – and operate with agility, scaling the initiatives that work and learning from those that don't,' she further added. 'While some trends may appear as a real threat to traditional retailers, their pace of growth means that retailers need to explore adopting activities which complement such trends to enable them to successfully navigate this shift in consumer behaviour.' Fibre2Fashion News Desk (SG)
Fashion Network
02-05-2025
- Business
- Fashion Network
Physical stores lagged inflation in April says latest BDO tracker
April's shopping reports are starting to come in and they don't look great. That latest says that while sales rose year on year, they're still lagging inflation. That's according to the BDO High Street Sales Tracker. It said total like-for-like discretionary sales grew by 3.7% in April, from an almost-flat base of +0.4% in April 2024. So the latest figure hasn't even managed to make up for last April's well-below-inflation sales, and is still below this year's inflation figure. BDO also said that in-store sales in particular were worrying. They recorded below-inflation growth of 2.3% from a base of a 1.7% fall in April 2024. It added that the 'high street risks being 'hollowed out' as consumers shift shopping online'. As this suggests, online was what drove growth last month, with a a 5.6% rise. The report from the accountancy and business advisory firm shows that retailers continue to struggle to get consumers spending in physical stores as far as discretionary product categories are concerned. The lifestyle and homewares sectors recorded particularly poor performances in-store. But while the warm weather during April provided a boost for fashion sales, physical stores still struggled to capitalise on this. Sales in-store grew by 5.2%, but this is against a base of -8.3% in April 2024, meaning that the category has failed to recover from this poor performance. Sophie Michael, Head of Retail and Wholesale at BDO, said: 'While April's results may initially appear positive, it was a month boosted by warm weather and seasonal events such as Easter and school holidays, which typically help to drive consumer spending. It's clear that there is a cloud of uncertainty around economic issues such as the introduction of trade tariffs and cost increases, which has had a material knock-on effect on consumer confidence and their willingness to spend. 'When household finances are under pressure, consumers will understandably reduce their spending in discretionary categories like homewares and lifestyle and prioritise spending on experiences with family and friends. 'While online retailers are still managing to record sales growth, high street stores are really struggling to get shoppers through the door.'
