Retailers are discounting winter clothes amid mild weather spell

In October the British Retail Consortium (BRC) warned the higher cost of living was impacting retail sales. But now the mild weather is having a negative impact too. Clothing and footwear, which saw stronger sales earlier this year, is now seeing consumers holding back from purchasing winter outfits as the weather remains unseasonably warm for this time of year.

These winter outfits are privy to being discounted as some retailers have been holding cold weather stock since August, much of which remains unsold.

With consumers delaying purchasing winter coats and accessories, the cold weather ranges could be discounted with retailers under pressure to reach end of year targets and offer discounts for Black Friday and the upcoming holiday season.

“The unseasonably mild weather in October led to a decline in clothing and footwear sales as customers wait for temperatures to drop before fitting out their winter wardrobes with coats, boots and scarves,” James Hardiman, retail analyst at the BRC told the Evening Standard.

Helen Dickinson OBE, Chief Executive, BRC said in a statement released on Tuesday: “As the cost of living for consumers continued to rise, retail sales slowed in October. With November Black Friday sales just around the corner, many people look to be delaying spending, particularly on bigger purchases. Clothing and footwear, which saw stronger sales this year, declined as the mild weather meant customers held back on buying winter outfits.”

Paul Martin, UK Head of Retail, KPMG, said: “Given the economic headwinds, it is unlikely that the usual festive boost will be enough to counteract the ongoing issues that retailers face with rising costs, squeezed margins and falling demand. Many may feel that they have little choice but to reduce prices to hold onto customers but with their own inflationary pressures to contend with, bumper promotions before Christmas could damage already tight margins further.”

“Whilst Christmas is by no means cancelled as consumers focus on one bright spot amongst the economic clouds, retailers are facing possibly their toughest festive season in a decade as shoppers look to trade down, search out bargains and purchase less to meet the economic challenges ahead.”

Article source: British Retail Consortium, Evening Standard