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UK consumers plan spending cuts – KPMG

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Retailers be warned. Declining confidence in the UK economy means consumers are cutting back spending, according to a survey by KPMG seen by The Guardian newspaper.

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Ahead of the government’s spring statement, the report showed increasing numbers believe the economy’s heading in the wrong direction. Its survey of 3,000 UK consumers shows 58% feel the UK economy worsened in the three months to the end of February, an increase of 15% from the three months to the end of November.

Although most people reported feeling financially secure, as many as 43% of consumers said they were reducing their spending on everyday items, while more than a third reported saving more as a contingency, and 29% said they were deferring the purchase of big-ticket items.

According to the KPMG survey, the number of people feeling insecure about their personal finances grew from 21% to 24%. Within that, 15% of people said they were having to cut discretionary spending to pay for essentials, while 2% said they were incurring debt to pay bills.

Linda Ellett, the head of consumer, retail and leisure at KPMG UK, said growing nervousness about the economy was leading some households to cut their spending even if they were currently in a secure financial position.

She said: “Some may be taking this action as they prepare for higher costs, such as a new mortgage deal or the higher cost of travel. But other cautious consumers are certainly preparing for the potential impact on them from what they believe to be a worsening economy.

“This week’s spring statement needs to give people the confidence in the longer-term UK economic outlook.”

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Balenciaga and Scholl launch footwear collaboration

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Balenciaga has teamed up with Italian heritage brand Scholl to launch a footwear capsule collection.

Balenciaga and Scholl launch footwear collaboration. – Balenciaga x Scholl

The capsule merges the Parisian fashion house’s savoir-faire with Scholl’s expertise in comfortable orthopaedic footwear and insoles to introduce footwear with cork soles and footbeds, including heeled mules, booties, and boots, flat sandals and mules crafted from premium materials like Nappa sheepskin and calfskin. 

Notable design features include metal buckles inspired by Scholl’s original 1956 Pescura sandal and reimagined beechwood platform clogs with perforated uppers. The collaboration also introduces co-branded versions of Balenciaga’s iconic Pool Slide Sandals.

Debuting as part of Balenciaga’s Fall 2025 collection, the collaboration stems from creative director Demna’s vision “to create the most comfortable heels ever made, infusing the House’s distinctive silhouettes with Scholl’s unparalleled comfort.”

The collection is now available at select Balenciaga boutiques worldwide and online.

Last month, Balenciaga launched a Brand Ambassador Fanclub Series, featuring a lineup of global icons, including Isabelle Huppert, Kim Kardashian, Michelle Yeoh, Nicole Kidman, and PP Krit Amnuaydechkorn.

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Gente Beauty secures investment from Webster Capital

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Brazilian body care brand Gente Beauty announced on Friday a significant investment from private equity firm Webster Capital. 

Gente Beauty secures investment from Webster Capital. – Gente Beauty

Gente Beauty is the first skin and body care brand to offer lymphatic-drainage products, recognizing the importance of treating your body with the same care as your face. Financial terms of the transaction were not disclosed.

“This partnership with Webster Capital is a game-changer for Gente Beauty. With their support, we can expand our reach and continue redefining body care through innovation and Brazilian beauty rituals,” said Marianne Fonseca, founder of Gente Beauty. 

“Our mission has always been to empower people to care for their bodies with intention, and this investment brings us one step closer to making self-lymphatic drainage an essential part of everyday wellness.”

As part of the investment, Webster Capital, known for its strategic focus on consumer-packaged goods, direct-to-consumer e-commerce, and retail expansion, will bring its institutional knowledge and operational support to help scale the brand. 

Tony Olson, founder of Webster Capital, brings a wealth of experience to the partnership. Previously, he served as CEO of Spins for over two decades, transforming it into a leading provider of market insights for the natural, organic, and wellness sectors.

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UK Manufacturing Health Index shows negative trend for fashion, but bumper Q3 skews comparisons

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UK fashion manufacturers began 2025 against a backdrop of “shaky” demand, a new report shows, with it saying that sales and purchasing dipped and lead times started to creep up. 

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That said, some of the bad news comes from the fact that the third quarter of 2024 was a particularly strong period so any quarter-on-quarter comparison will look weak. But the current performance, while nearer ‘normal’ is still weaker than usual.

And recent American announcements about import tariffs are only likely to pile on more pressure and create more uncertainty, potentially denting manufacturing activity. Whether that dent is catastrophic or not remains to be seen, however.

Unleashed, an inventory management and software specialist, said that its figures show small and mid-sized firms saw their average sales revenue drop by a third in the final quarter of last year, from nearly £524,000 in Q3 to £352,000. And the number of purchase orders (POs) placed also fell by half from 790 to 399, while lead times were slightly up – from 23 days to 25 compared to Q3.  

The research also shows that sales revenues were down by almost 3% compared to the same period last year, and POs by over 8%.

The company works across multiple industries but looking specifically at clothing and fashion it said that while profitability/return on investment improved in Q4 both year on year (YoY) and quarter on quarter (QoQ), sales revenue was down against both comparison periods. That almost 3% YoY decline referred to above looked tame compared to the nearly 33% QoQ plunge. Meanwhile POs declining by the aforementioned more-than-8% YoY also seemed relatively stable compared to almost a massive 50% QoQ drop.

That said, while lead times expanded, as mentioned, from 23 days to 25 days QoQ, they were down from 38 days in Q4 2024.

As we said, Unleashed works across industries and has data for 12 different industrial sectors. It said that clothing and fashion wasn’t the hardest hit with suppliers in the energy and chemicals market seeing an even bigger decline.

“Low consumer confidence and newly-volatile international trading conditions seem to be taking their toll on manufacturers across almost every category we looked at – which made it a tough start to the year for many businesses,” it explained. 

But it added: “While many will be rightly concerned about this drop-off, it’s worth bearing in mind that Q3 2024 was a bumper quarter, when we saw both sales revenue and POs surge. That suggests performance is returning to more normal levels, albeit a little more subdued than we’d all like to see.”

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