Following poor trading in October, many high street players plunged into double-digit negative like-for like territory in the first half of November.
According to BDO Stoy Hayward’s Like-for-Like Index, which records weekly figures from 37 mid-market fashion retailers, average sales were down 6 per cent in the week to November 4. For the same week last year its index reported like-for-likes up 6 per cent.
Retail Week spoke to more than a dozen fashion bosses and they all said the past few weeks have been extremely difficult.
One chief executive of a large fashion group said: “The past four weeks have been horrible. There has been no key must-have item this season and there is an over-abundance of partywear in many shops at the moment.”
He added: “I think it will pick up in coming weeks, but I will be amazed if the industry has a great Christmas.”
Another said the fallout from the Northern Rock crisis has been felt “longer and deeper” than the aftermath of the July 7 bombings in London. He added that footfall in shopping centres nationwide had been particularly poor. Verdict chairman Richard Hyman said that nervous consumers are leaving it later to spend their money. “I do not think Christmas has been cancelled, but spending has just been delayed until December.”
Peacocks chief executive Richard Kirk said the value-fashion retailer had delivered positive like-for-likes in September and October, but that November had been “difficult”, although he declined to give figures.
BDO Stoy Hayward head of retail Rupert Eastell said: “In real terms, the industry is worse off than in 2005. People are concerned about the credit crunch and share prices so are waiting before they spend their money.”
However, some fashion retailers said they had started to see some improvement as colder weather kicked in this week.
Stats: Week to October 28: -5.6%
Week to November 4: -6%
Week to November 11: -3.5%
BDO Stoy Hayward Like-for-Like Index
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