Home Skincare UK retail’s Golden Quarter loses its shine, trend struggles – report

UK retail’s Golden Quarter loses its shine, trend struggles – report

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Any hopes of a glittering Christmas for retailers pale Friday as this yr’s Golden Quarter gross sales “plummeted”, BDO stated, calling December the “worst efficiency” since its information started in 2017. And trend retailers have been hit the toughest.

Picture: Pexels/Public area

The poor efficiency will set retail alarm bells ringing, in keeping with the consultancy and information firm, as Golden Quarter gross sales are often anticipated “to bolster income and provides retailers the capital they should make investments”.

Sophie Michael, Head of Retail and Wholesale at BDO, stated: “There’s a actual threat that 2024 will see extra retailer closures and extra retailers struggling as shoppers flock to those who can supply a greater in-store or on-line expertise, product vary or extra aggressive pricing.”

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So what occurred?  The style sector carried out significantly poorly within the run-up to Christmas, in keeping with the BDO’s Excessive Avenue Gross sales Tracker, with gross sales falling 6.1% in comparison with 2022, and in-store gross sales plummeting 7.5%. 

Gross sales within the life-style and homewares sectors fell much less sharply, however nonetheless declined 0.2% and -1.6%, respectively.

That meant total gross sales (trend, life-style and homewares mixed) fell by 2.7% in comparison with 2022.

BDO’s Michael confirmed that 2023 was “solely the third yr on report with unfavorable in-store gross sales in every of the three months main as much as Christmas”. It final occurred in 2015.

She added: “Bearing in mind inflation, which stays excessive, the seriousness of those outcomes shouldn’t be underestimated.”

BDO stated the month began negatively, with gross sales falling 3.49% in week one, after which they worsened, with gross sales in discretionary classes falling 6.25% in week two and 4.49% in week three. 

Regardless of an uptick within the week main as much as Christmas Eve, gross sales fell once more within the last week of December, by 3.58% in comparison with the identical interval final yr.

Michael continued: “This regarding set of outcomes signifies that retailers have didn’t generate the a lot wanted revenues within the essential interval, leaving them with comparatively excessive seasonal inventory ranges as they enter the brand new yr. It will little doubt have an effect on their already squeezed margins and their means to generate money for future funding.

“In distinction, it’s been broadly reported that supermarkets have carried out effectively over Christmas. Customers have clearly chosen to channel their discretionary spend [to food] slightly than on new outfits or presents. This will probably be of serious concern to these retailers closely counting on discretionary spend.”

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