Fashion sales plummet again

Fashion total like-for-like sales declined -12.1% in January 2021, falling from a solid base of +7.7% in January 2020, according to BDO’s High Street Sales Tracker.

It marks a dismal eleven consecutive months of negative total like-for-like sales for fashion.

Lifestyle total like-for-like sales contracted by -16.7% in January - from a base of +8.5% for the same month last year. It marks the worst since June last year, and the second consecutive month of negative total like-for-like sales for the sector.

After a disappointing Christmas, retailers recorded their worst January result since BDO started recording total like-for-like sales in 2017, plunging -10% as another national lockdown shuttered shops across England.

However, Lockdown 3 did see online sales rocket to the highest result on record at +132.8% in January. The boost in online activity prevented sales from falling to the depths of the first national lockdown, though January’s result still marked the worst monthly total like-for-like result since June, 2020, which was -14.4%.

Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “You would normally see positive growth at the start of the year thanks to the post-Christmas sales, but this year retailers experienced a bleak January after a very lacklustre Christmas.

“Recent administrations point to a squeeze on the middle market. With unemployment set to rise further, the hit to discretionary spend will likely push shoppers towards value retailers and ever-growing online retail platforms, putting further pressure on the mid-market.

“The future for retailers is currently clouded by uncertainty with significant challenges ahead. Retailers have the additional problem of predicting how and when consumers will return, and at what level of spending. Added to this, consumers are already displaying potentially lasting new shopping habits and varying product preferences, across all age groups. These challenges together with the need to provide a Covid secure environment are no small feat given the mounting pressures they face.

“Providing a road map out of lockdown is a tall order, but one that retailers desperately need so they can begin to plan for a sustainable future.”