The volume of clothing and footwear retail sales is likely to fall by 0.6% year on year in the final quarter of 2017 as shop prices rise, according to new research.
Sales volumes across non-food categories in general are expected to fall by 0.1%, retail analyst Global Data predicted. However, as a result of the price inflation, the amount spent by consumers on non-food is set to increase by 1.2% year on year in the fourth quarter
Global Data warned that Christmas is likely to disappoint many clothing and footwear retailers.
“After a poor third quarter, clothing and footwear retailers will be hoping for some respite in the fourth quarter, and an opportunity to end the year on a more positive note,” it said.
“However, Christmas will disappoint many in the sector with another quarter of declining volumes forecast, down 0.6% on Q4 2016, despite retailers’ attempts to ignite spending via newness and discounts.
”Retailers that have traded well throughout the year such as Primark, ASOS, JD Sports, Zara, Very, Kurt Geiger and Selfridges will continue to prosper in Q4 given their compelling and differentiated propositions. Meanwhile, we do not expect to see a reversal in fortunes among those that have suffered in 2017, with the likes of Debenhams, Next, Arcadia and New Look forecast to lose out.”
The report concluded that online pureplays such as Asos and Amazon will be the winners this Christmas, thanks to their “vast product offer, market-leading, fast and low-cost delivery propositions”.