Fine weather puts a downer on UK clothing sales
Market concerns over current trading
October 4 2002
UK clothing retailers saw their share prices fall sharply on Thursday as the markets showed their concern over a drop in consumer spending on clothing.
Worries over a trading statement by Next which shows a sharp fall in like-for like sales triggered the concerns, compounded by figures from both fashion brand Ted Baker and clothing-focused department store operator Beale which showed like-for-likes down.
Marks & Spencer also saw its share price drop, amid continued market concerns that it will report a fall in clothing sales in a trading statement next week.
Retailers feel that fine weather throughout September is at the heart of the current problems, with consumers reluctant to invest in winter wardrobes while the sun shines.
Philip Green, owner of Bhs and about to take command of the Arcadia brands, told the Daily Telegraph that privately-held Bhs saw like-for-like sales fall by 2 per cent in September. He said: “It’s difficult to sell winter merchandise in this summer weather. I don’t need a consultant to tell me that, I’m looking out my window and people are wearing sleeveless T-shirts.”
New Look, which yesterday reported increased sales, attributed its success in part to the act that it still has plenty of lighter clothing in store. Chief executive Stephen Sunnucks said: “If anything, things have got slightly better since July. We’re selling lots of denim, crochet tops and suede skirts. We haven’t got much heavy knitwear or coats in the stores. Those will come in during the next couple of weeks.”
