AAs the cost of living crisis mounts, UK buyers are cutting their budgets in almost every area. But there is one notable exception: Money spent on clothes is above pre-pandemic levels, the return of weddings, vacations and socializing fueling a boom in “revenge spending” or buying the delicacies lost during the months of confinement due to the pandemic.
Shoppers are spending nearly a fifth more on clothing than they did last year, research by Kantar for The Guardian found, taking the value 1% ahead of the 2019 figure.
The resilience of demand for fashion, footwear and beauty products is defying expectations of a slowdown in non-essential spending, despite a shortage of additional cash from rising energy bills and food and transportation costs.
Footwear was the fastest growing non-food category last month, according to British Retail Consortium data released this week, with clothing in third place behind health and beauty. By contrast, sales of almost all other non-food items fell, including those of toys, technology and home goods.
“People are appreciating that little bit of escapism,” said Andy Saxton, director of fashion insight at Kantar. He suggested money was being saved on workwear, where spending was down by almost a quarter compared to pre-pandemic levels, and instead went on items with more flexible use, from T-shirts to dresses, which could be used for social occasions and as more. relaxed office attire.
The reopening of high streets, which has made it possible to try on more fitted clothes such as jeans and bras, and to make shopping a more social occasion, has caused a dizzying rise in sales of the British market leader, Primark, which did not have a store. on-line. during lockdowns. Sales were up 81% for the 12 weeks ending May 28 and were up 4% from 2019 levels.
Marks & Spencer, Spanish-owned chain Mango and online specialists Boohoo and Asos have seen customer spending continue to rise.
“Fashion is still enjoying the online boom and revenge spending,” said Kayla Marci, market analyst at fashion research and advisory group Edited, referring to the industry term for when people spend more after a negative event. .
Part of the reason until receipts return to pre-pandemic levels is because everything costs more. Kantar found that the volume of garments being sold had fallen by around 8%, while the average price paid for garments had risen by 9%.
However, Saxton said the higher spending was not only due to inflation, but also due to shoppers choosing better brands. “People are making more considered purchases. Impulsivity is going down. People want more control over where their money goes and they have to go further.”
He said shoppers were looking for fashion that “is going to last a little longer” and that they won’t have to replace “in the next few months.”
That coincided with research chain John Lewis conducted in May in which 37% of shoppers surveyed said they were looking for versatile clothing to stretch their money further. The department store said it hadn’t noticed a recent drop in sales in any fashion category. Social wear was proving particularly popular, with 55% of respondents saying they intended to invest in them.
“Not only have we seen sales of entry-level price points increase, but also high-end products that customers know they will be able to use again and again,” said Beth Pettet, buyer for John Lewis.
According to Kantar, the overall market is also being sustained by strong sales of staples such as underwear, sleepwear and socks, with spending in those areas up 10% from pre-pandemic levels. Again, that’s partly due to higher prices. The cost of cotton has been volatile and underwear prices have been among the biggest risers at 21% more than in pre-pandemic years, according to Edited.
Demand for sportswear has also remained strong, with the lifestyle changes made during the pandemic continuing. Spending is up 3% from 2019. Sales of sneakers are up a fifth as casual footwear becomes more the norm, but smart shoe sales are on the decline.
Wedding and party attire purchases are also on the rise, with spending now 1% higher than pre-pandemic levels and 165% higher than last year, according to Saxton. “Many people go through their wardrobe and realize the last time they wore an outfit was over two years ago and they need a wardrobe update.”
Holiday gear spending is more than triple what it was last year, but remains almost a fifth below pre-pandemic levels, Kantar found.
Pippa Stephens of the research group Global Data said a shift to more casual workplace attire is likely to mute trade for suit and shirt makers. She suggested that supermarkets and stores such as Primark and possibly Marks & Spencer would likely benefit from a focus on essentials.
Younger shoppers have been found to be cutting back much more, according to Stephens, a change that would affect more fashion retailers and online specialists.
“Most have lower incomes or have young families to care for. Older shoppers’ incomes are less affected and they focus on more vintage items that they are less likely to cut back on,” she said.
However, the state of clothing sales in the retail market is expected to be much more difficult in the coming months.
Saxton suggested that the fall and winter fashion season is likely to face difficulties as inflation continues to squeeze purchasing power in the UK and clothing supplies are hit by difficulties with production in China and other countries where Covid lockdowns have led to factory closures and port delays.
Natalie Berg, a retail analyst, said “the worst was yet to come” in terms of consumers cutting back on fashion spending. This would be “especially in October, when we have to turn the heating back on and the prospect of even higher energy bills hits us”. She said: “That keeps retailers up at night.”
Source: www.theguardian.com