A last minute dash for holidays, together with strong sales of waterproofs, have again replaced the vision of a UK summer heatwave with shoppers rampaging after light fashion clothing.
Flash floods at Boscastle in Cornwall and major mudslides in central Scotland point to the weather being slightly less of a feeble excuse for poor summer sales. Last month's clothing sales were the worst for two years. The implications extend well beyond immediate short-term performance worries for fashion retailers, though others have also found trading challenging this summer.
Retailers with store requirements need to demonstrate solid trading performance to landlords that will grasp at any evidence when weighing up offers for sites. There could be more than a passing interest, then, in an analysis of retailers' summer trading statements conducted by property agent Donaldsons, which is likely to appear on the desks of key clients, including Hammerson, Capital & Regional and Capital Shopping Centres.
Negative like-for-like sales growth this summer at many top retailers constitutes a serious black mark against them. However, the problems for struggling retailers extend beyond securing the next few stores. Asset managers, who want to replace weaker players with those that have a bigger pull on shoppers' wallets, represent an ongoing threat.
The performance this summer of non-food retailers contrasts sharply with the top supermarkets, which have continued to power ahead. Few retailers matched their strong like-for-like sales growth. For traditional non-food retailers, it can only get worse. The strong performance of the top supermarkets has been bolstered by their rapid move into non-food. Tesco's foray into this area has been aggressive, while Asda's recent decision to open its first general merchandise store at Walsall in the West Midlands is 'a clear indication of where this sector is heading', according to Donaldsons.
Retailing at its best is based on uncomplicated strategies.
Shoppers switch off when faced with any barrier to consumption, opting to take their trade elsewhere, or splash out on an increasing array of leisure and lifestyle alternatives. Supermarkets, with their straightforward, hassle-free approach to non-food have a clear advantage. 'The formula of these operators is surprisingly simple, relying on the conversion of existing brand loyalty and high pedestrian flows to higher margin non-food spend,' says Donaldsons.
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