Fashion INDEXDrapers

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Total fashion

Despite the challenging economic climate, the total spend by Visa cardholders in the UK actually increased 6.1% to £407bn last year. Ecommerce transactions, in

particular, leapt 11.5% to £96bn and now represent almost a quarter of consumers’ total spend.

Because of � gures like these, online retailing has become an increasingly attractive alternative for retailers who are getting fed up with bricks-and-mortar stores that require maintenance and sta� ng along with rent payments. As such, these businesses could be forgiven for examining their store portfolio, identifying the weakest performers and marking them for closure.

This narrow view has a fatal � aw, however: it overlooks the e� ect of the UK’s ageing population. Even though online spending among people over 50 has risen by a quarter since 2010, consumers in this age group still prefer to buy clothes the traditional way, according to research commissioned by over-50s � rm Saga. Even though more than 25% of respondents reported that they own a smartphone, iPad or other tablet computer, only 6% of their credit card transactions for clothes were actually made online.

These � gures support the � ndings of a report from consultancy � rm AT Kearney, which shows that the mature consumer shops very di� erently from the younger generation. While larger stores outside city centres, lots of parking, and short queues have all been designed to improve e� ciency for shoppers, mature consumers – who now represent up to 30% of consumer spending power – prefer to spend more time in stores.

While analysts have typically frowned on those who invest in a business based solely on the � nancial data contained on a spreadsheet, it is equally wrong to decide to restructure an entire business based on this same information. Instead, retailers should be thinking about how to best serve the needs of their customer base.

Of course, I’m not saying store closures can be avoided altogether. However, when deciding the best way forward, retailers will need to recognise what impact store closures could have on their customers and consider how to protect these revenues, rather than simply handing them to a competitor.

‘Don’t overlook the in-store spend of the over-50s’_ Dan Coen

/ Talking Trade /

Director, corporate advisory � rm Zolfo Cooper

This week saw a fractional decline week on week of 0.4% of the National Index. This can still be viewed as a positive outcome, as the previous week showed an unusual 8.5% increase week on week. However, there was still a decline year on year of 2.9%. Industry commentators are reporting an uplift in sales in January, with an outlook of an erratic increase in sales over the coming months, which would appear to be borne out in this week’s figures.

Fashion did well this week with spring lines high in demand. Clothing outperformed footwear with demand across mainstream fashion greater than the specialist retailers. For more information, email BDO’s Don Williams at don.williams@bdo.co.uk

Like-for-like sales figures across the high streetWeek ending February 10, 2013

National UK footfall figures Week 6 – February 4 to February 10, 2013

Highest growth location (defined by % increase in tra� ic to DrapersJobs week on week)

LEICESTER 10.3%

The most applied for jobs

WEEKLY FOOTFALL RETAIL INDEX

HIGH STREET SALES TRACKER

DRAPERSJOBS.COMThe UK’s employment hot spot and the most popular roles

WEEK-ON-WEEK CHANGE

-0.4%

YEAR-ON-YEAR CHANGE

-2.9%

Footwear

Clothing

+11.6%

+3.2%

ILLU

STRA

TIO

NS

BY N

ATH

ALI

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ES1. Design 8.3%

2. Merchandising 6%

3. Production 5.8%

4. Sales 5.2%

5. Retail management 4%

As a percentage of total applications on DrapersJobs last week

+7.87%

£4.97bn

ILLU

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ATH

ALI

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ES

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RETAIL OUTLOOK FOR THIS WEEK

The five top stories from around the globe

We’ll o� er young Chinese and those who like fashion a place [to] experience an authentic [European] buying experience”

The menswear market is in growth, driven by a preference for full-priced over discount

INTERNATIONAL

CHINA

FASHIO

N C

HA

INS

IND

IES

GEN

ERAL STORES

DEPT STO

RES

FOO

TWEA

R

HO

ME SH

OPPIN

G

PURE-PLAY ETA

IL

DISC

OU

NTERS

SUPERM

ARKETS

SPORTS STO

RES

0%

30%

SALES & TRENDS – MENSWEAR

2011

2012

GALERIES LAFAYETTE will open its � rst Chinese store, in the Xidan district of Beijing, in September. The store will occupy six � oors with an area of 516,000 sq ft. Galeries Lafayette is looking to open more Chinese stores over the next � ve years.

FAST RETAILING is opening 10 Uniqlo stores in the Philippines this year as it aims to grow the brand in the country. Four stores are expected to open in the � rst half of the year, including one in the SM Aura Mall in Taguig.

DECATHLON plans to open 25 additional stores this year in China and aims to have a total of 150 stores there by 2015. In Guangzhou alone, it expects to be operating 20 stores in two years’ time. To date, Decathlon has opened 56 stores in China.

INDITEX TRENT, Zara’s Indian unit, has posted a pro� t in two out of the three years it has been in the market. According to sources, Zara’s � nancial success in India is partly due to Trent’s tight control of real-estate costs.

GAP has reported net sales for the fourth quarter of � scal year 2012, which ended February 2, 2013, were $4.73bn (£2.93bn) with $4.28bn (£2.65bn) for the fourth quarter last year. Comparable sales for the fourth quarter were up 5%.

Retail sector share £%

PRODUCT TRENDS

24 weeks ending December 23, 2012 versus 2011

PHILIPPINES

�

�

�

�

�

INDIA

USA

Expenditure£4.97bn

+3%

421mNumber of units

£11.84+0%

Average selling price

Shen Lang, managing director, Beijing Galeries Lafayette

+2%

Menswear performed well in the run-up to Christmas 2012, with volumes in growth for the past three monthsKelly Chandaria, category analyst at Kantar Worldpanel

24 weeks ending December 23, 2012 versus 2011, according to Kantar Worldpanel Fashion

Few words hereshort decscription

thank you

-0.0 Growth in spend online among the

over-55s

+20.6% Growth in menswear for over-55s, driven

by increase in prices and buyers

+8.3%