In a proactive “tactical” move ahead of the busy Golden Quarter, UK fashion manufacturers are responding to shipping delays and rising demand for goods by building stock levels.
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Clothing, footwear and accessories manufacturers are stock-piling in a bid to maintain product availability and service levels in the face of longer lead times – which increased by 13 days from Q1 to Q2, according to a quarterly report by inventory management software platform Unleashed.
The report also shows small- and mid-sized firms generated £480k in sales in Q2 2025 – a 109.28% jump on the same period last year, although this was an 18.9% dip on the previous Q1 period.
At the same time, lead days rose from 19 days to 32 days quarter-on-quarter how that small- and mid-sized firms generated £480k in sales in Q2 2025 – a 109.28% jump on the same period last year but 18.89% drop on the previous quarter
Meanwhile, the number of purchase orders (POs) jumped by 37.85% year-on-year (YoY), and increased significantly QoQ. The wider report, based on data from more than 600 UK firms, noted the surge in purchasing corresponded with an increase in the value of excess stock, which more than tripled QoQ from £24,920 to £88,371.
Profitability – measured as Gross Margin Percentage (excluding wages) – also dropped marginally by 4.37 percentage points QoQ and 2pp YoY.
Joe Llewellyn, GM of ERP Small Business at The Access Group, the parent company of Unleashed, said the move towards “cautious buffering” should help firms weather any further supply challenges over the coming months.
“The rise in POs and stock levels marks a tactical pivot for fashion manufacturers, with cautious buffering designed to mitigate the risk of delays and stockouts, particularly ahead of Black Friday and Christmas.
“In many cases, this isn’t a knee-jerk reaction to market conditions but a measured response. As manufacturers become more data driven, they’re able to improve their forecasting capabilities and reduce the risks associated with stock purchasing decisions.
He added that looking ahead, “there are promising signs that manufacturers will end 2025 in a good position”.
“Sales are healthy, while separate figures show that business confidence has risen steadily every quarter this year. The Bank of England has also cut interest rates from 4.25% to 4%, while inflation is expected to fall below the 2% target. Taken together, this could contribute to margin recovery and selective growth.”
