Recent footfall reports showed low interest in shopping during February and now actual consumer spending and retail sales figures are coming out, backing up those reports.
On Tuesday the regular monthly Barclays consumer spending report and the British Retail Consortium-KPMG Retail sales monitor showed that February was the dullest month of the year not just because of the cloudy skies.
Looking first at the Barclays report, which covers a wide range of consumer spending offline and online, it said that spend grew only 1% year on year.
That was lower than the 1.9% growth seen in January and well below the latest CPIH inflation rate of 3.9%.
Admittedly, discretionary spending remained in growth at +2.1%, but it still lagged that inflation figure.
Barclays said that “with warnings of increases in energy prices coming in the weeks ahead, consumers took the opportunity to get their financial priorities in order. As a result, essential spending declined in February”. But in something of a contradiction, it also said that “consumer confidence rose to record highs”.
Confidence in household finances reached the highest level Barclays has seen since it started tracking this measure in 2015, at 75% (up from 70% in January), “bolstered by consumers’ careful money management, even in the face of rising costs”.
Looking more specifically at retail, Barclays said the sector saw marginal growth of 0.6%, but was propped up by a surge in electronics sales, which enjoyed its greatest increase since 2021, up 6.7%.
Clothing transaction numbers rose 2.2% but actual clothing spend was up only 0.4%, suggesting consumers are still very price-conscious.
And regarding specific types of retailers, department stores reflected that trend with transaction numbers up 2.8%, but actual spend only rising 0.6%. And discounters dropped almost 2% on both fronts.
Yet beauty continued to defy the sluggish spending trend with pharmacy, heath & beauty transaction numbers up just 0.2% but spend up 8.9%.
The BRC-KPMG report meanwhile talked of “grey days for fashion sales”. UK Total retail sales increased by 1.1% year on year in February, the same percentage by which they’d grown a year ago and still below inflation.
The Monitor’s assessment of non-food sales were that they were flat year on year in February, admittedly better than a decline of 2.7% in February 2024, but still far from making up the ground that was lost a year ago.
In-store non-food sales actually decreased by 1% this time, but at least online non-food sales rose 1.9%. However, once again, this didn’t make up for the fall of a year ago when such e-sales had dropped 4.1%.
Helen Dickinson, BRC CEO, said: “Retail sales saw more modest growth in February. While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics. Jewellery, watches and fragrance sold well thanks to Valentine’s Day, reversing declines seen last year.
“Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on spring and summer wardrobes.”
And Linda Ellett, UK head of consumer, retail & leisure at KPMG, added: “Consumers remain cautious with their spending and many are continuing to prioritise saving, travel and experiences. But occasions and offers are still tempting shoppers into some impulsive spending. Valentine’s, for example, brought a jewellery sales boost to the high street, in what was otherwise a flat month for in-store buying.
“Online shopping and the growth of social commerce has contributed to a lowering of demand for some physical retail stores and boardrooms will continue to keep a close eye on monthly footfall and sales data as 2025 progresses.”
In-the-news Debenhams has turned its attention away from corporate matters to tell us the brand is heading to the races. The digital department store has signed a two-year partnership deal to sponsor The Jockey Club and its premier racecourses.
Specifically, the ‘Debenhams Day Spa’ is to launch at four of the UK’s key fixtures, creating “unrivalled moments of glamour and excitement” to deliver immersive race-day beauty experiences at some of the most prestigious fixtures on the racing calendar across 2025-2026.
It all begins with the upcoming Cheltenham Festival (15-18 March), followed by Epsom’s Derby Festival (7-8 June), Sandown Park (5-6 July), Newmarket’s July Festival (12-14 July), and the Grand National Festival in 2026.
We’re told the partnership unites “two British icons in retail and racing, blending Debenhams’ legacy of championing personal style and self-expression with The Jockey Club’s heritage of elegance and performance”. And the aim is “creating a modern space for racegoers to indulge in the very best of fashion and beauty from Debenhams”.
The Day Spas are luxury pop-up destinations that will provide spectators with interactive beauty moments and touch-ups using L’Oréal Luxe products (Lancome, YSL, Prada, Armani and Viktor + Rolf).
The spas will also feature pieces from the Coast at Debenhams fashion collections.
Beyond race-day activations, the partnership includes year-round branding across The Jockey Club’s 15 racecourses, “delivering consistent exposure to race-day audiences and an average ITV viewership of 400,000 across 85 fixtures annually”.
Dan Finley, CEO of Debenhams, said: “Horse racing embodies elegance, excitement and unforgettable memories – values that align perfectly with our ethos. Our Debenhams’ Day Spas will offer racegoers an irresistible opportunity to unwind, indulge and feel their very best throughout the day.”
Best-know for its trainers, New Balance is increasingly turning its attention to the comfort/leisure footwear sector.
Described as a “new market opportunity for New Balance”, the introduction of the new ‘Made in UK Allerdale’ comes about as the brand “looks beyond only retro running by capitalising on a shift towards a more formal and tailored approach to fashion”, according to New Balance creative design manager Sam Pearce.
The ‘Allerdale’ is the latest addition to its ‘Made in UK’ collection with the all-new model “combining the brand’s “walking shoe heritage and contemporary design for a more formal aesthetic”.
Designed for both “comfort and elegance”, the Allerdale’s craftsmanship and style is paired with the brand’s signature FuelCell cushioning comfort technology.
The model features a cupped sole unit, with heavy-duty stitching and a hiking-inspired tread. Made with premium leather and suede, the shoe is finished with minimalist branding marked by an embroidered flying New Balance logo.
Pearce added: “Building on the legacy of our revolutionary Hiker models, and our lesser-known walking collection of the 1980s – which were also made in England – this design was born and named by its very surroundings. The ‘Allerdale’ is a modern expression of a classic style, built for those who want to walk their own path.”
The Allerdale, in brown leather, will be available globally online from 20 March.
eBay continues to develop its fashion resale category introducing a “groundbreaking” editorial and fashion film project, ‘The Goat Dancer’, culminating in the launch of an inspirational fashion edit.
The digital retail giant is “championing the transformative potential of pre-loved fashion sourced entirely on eBay” by joining forces with fashion photographer Nick Knight, stylist Lara McGrath and creative film/photography venue ShowStudio to develop the project.
With McGrath having established “an inventive and outré approach to styling” and Knight being “captivated by the stylist’s ability to layer and style pre-loved garments into visionary ensembles”, the stylist documents mirror portraits of herself in public changing rooms.
The ShowStudio collaboration brings that creative spirit to life “offering a treasure trove of fashion finds – all £50 and under – ready to be revived and reimagined”.
From scoring Jil Sander shoes for £30 to finding beauty in a Per Una chiffon top, repurposing a kimono into a fishtail skirt, or transforming a bedspread into a dramatic cape, “the project showcases the endless possibilities of second-hand fashion reimagined”.
With old-school glamour inspiring the hair look for the shoot created by Eugene Souleiman, and noughties-inspired make-up by Lynski, Knight and McGrath “crafted a surreal visual narrative that highlights the potential of reimagining fashion through sustainability and artistry”.
Live-streamed on ShowStudio, the shoot “celebrates individuality, reinvention, and the thrill of uncovering hidden gems in pre-loved fashion on eBay—proving that style, creativity, and sustainability go hand in hand”.
To celebrate the collaboration, eBay has also curated an exclusive ShowStudio x Lara McGrath edit featuring secondhand fashion pieces inspired by the shoot, “inviting designers to reimagine archival and pre-loved styles into fresh, relevant works of art that transcend time”.
Entertainment8 years ago