Fashion market suffers perfect storm

Next has warned it may have to hike prices by up to 5 per cent next year to offset the sharply weaker pound since the Brexit vote,

Figures from Kantar Worldpanel covering the year to September 25 show that the sector, which encompasses clothing, footwear and accessories, has seen four months of consecutive sales decline. Almost £700m has been lost from the value of the market compared to last year.

The research group’s consumer insight director Glen Tooke blamed a perfect storm of Brexit, the falling pound, the wide availability of discounted clothing and the unseasonable weather.

“Brexit is likely to have dented consumer confidence and the weak pound - most retailers trade in US dollars - could be an impact,” he said.

“Fashion retailers are still following the same patterns of over-buying and deep discounting and consumers are increasingly reluctant to pay full price. We have also had unseasonable weather. People are no longer buying in advance. People have been trained to shop at discount. Why buy a winter coat now when you can hedge your bets it will be in the sale? People have been trained to wait.”

Fashion retailers have had a torrid time of late. Next boss Lord Simon Wolfson warned that trading has been “challenging and volatile” as the retailer reported sliding profits.

The group has repeatedly warned it may have to hike prices by up to 5 per cent next year to offset the sharply weaker pound since the Brexit vote, which will push up the cost of importing clothes.

Last month over 50’s clothing chain Bonmarche issued a profits warning following the September heatwave which prevented shoppers from buying autumnal clothing. The Wakefield-based firm’s warning follows disappointing trading over the spring and summer when bad weather deterred shoppers from buying summer ranges.

Analysts said the warning could have implications for the bigger players in Britain’s clothing market, which have already endured unhelpful summer weather patterns.

Mr Tooke said discounts no longer have the effect that they did.

“People are spending more on going out than clothes shopping. If you are cutting back you think a lot more about how you are going to spend your money,” he said. “People say: ‘Do I go out for dinner or buy another dress when I’ve got 10 dresses already’.”

He added that a lack of big fashion trends has also dented clothing sales.

“We haven’t seen a really big style trend for the last four or five years, not since the maxi dress,” he said.