Report
Sizing up the F
Big changes are under way in clothing retail as the UK’s consumption pattern changes amid recession and pressure on household income. By George MacDonald
ashion shopping will, of course, never go out of style, but the dynamics of the way consumers shop are changing in the UK. While some fashion players continue
to thrive, particularly off the back of strong multichannel propositions, and
international brands remain very interested in the UK market, there is a change in the mix of what is being purchased, and a new mindset that considers value rather than just price. For example, though many are purchasing less in volume
terms, this is being partly off set by consumers who are prepared to spend a little more on the pieces of clothing they do buy. Plenty of opportunity remains, but retailers must adapt to the ‘new normal’ of lower volumes and a polarised market where diff erentiation is crucial or they face being left on the shelf. In order to gain further insight into the challenges and changes confronting its clients, Land Securities commis- sion quarterly research, working with retail consultancy Conlumino to provide up-to-date insight into key sectors. The latest white paper focuses on the fashion industry and includes bespoke research on the market from Conlumino, insights from agent Jones Lang LaSalle, as well as trends identifi ed in Land Securities’ own sales and footfall data. The internal research programme reveals a market increasingly polarising between value and premium, and distinct diff erences in spending patterns across fashion categories. This is made more complex and exciting by the growth of multichannel shopping. The changes occurring will shape the future of shopping locations as well as retailers.
FASHION 38% ELECTRICALS 33% FOOTWEAR 29.5% 10 autumn 2012 VOLUME CHANGES
SEGMENTS WHERE CONSUMERS INTEND TO MAKE FINANCIAL CUTBACKS
Since the downturn really took hold at the turn of the decade, clothing volumes began to drop back after climbing for many years helped by defl ation and low prices. There is little sign of change in the downbeat trend. Consumers remain concerned about their personal fi nan- cial situation and, when polled in May, almost 40% of them feared their circumstances will get worse. Unsurprisingly,
that means many people intend
to cut back on spending – almost 64% – and, as a discretionary purchase, fashion is top of the agenda for cutbacks.
Land Securities head of business-to-business marketing, Retail, Sean Curtis observes: “It is very clear from the research that clothing sales is an area which all segments of consumers are considering cutting back on – even childrenswear. Following the reduced spending on big-ticket items at the beginning of the recession, consumers attention has now shifted to the lower cost but, previously, high volume purchases of clothing as an area in which to make savings.”
Almost 38% of consumers who intend to make fi nan- cial cutbacks said they planned to reduce the amount they spend on clothing – far higher than beauty at 29%, for instance, or electricals at just less than 33%, although footwear was also lower at 29.5%.
Conlumino managing director Neil Saunders says the volume shift means some retailers will need to change their mindset to remain successful: “The old approach, ‘stick it out and it will sell’, doesn’t work. In the early 2000s people were just buying a lot of stuff . It was harder to fail. The lesson now is you have to be more focused – people may buy one top instead of fi ve.”
BEAUTY 29%
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