British shoppers are increasingly abandoning traditional seasonal purchasing patterns, leading to a significant decline in retail sales. According to consumer insight company Kantar Worldpanel, the overall value of retail sales dropped by 2% in 2016 compared to 2015, marking the deepest decline since August 2009 and knocking nearly £750 million off the market's total value.
Glen Tooke, consumer insight director at Kantar, said many retailers have been 'left behind' as buying patterns have changed. 'These companies are stuck in a rigid, seasonal buying cycle which no longer reflects how consumers shop,' he said. The data, covering clothing, footwear and accessories sold by both High Street retailers and supermarkets, highlights a shift towards more flexible purchasing, with shoppers waiting for sales and buying items out of season.
Retail analyst Richard Hyman pointed to 'twin evils' of excessive discounting and retailers not understanding their customers. 'In 90% of the trading weeks in 2016, more than half the retailers in the fashion market had some sort of sale going on,' he said, noting that this trains customers to wait for reductions. Dr Dimitrios Tsivrikos, a consumer psychologist at UCL, added that constant discounting can lead to a 'dilution of trust', making shoppers believe goods are overpriced initially.
Dr Tsivrikos also identified a shift towards 'modular purchases', where consumers buy versatile items that can be worn across seasons, rather than single-season garments. This trend is supported by key design labels moving away from traditional seasonal fashion weeks towards more versatile collections. Meanwhile, online-only retailers saw 7% growth in 2016, and independent retailers improved sales by 3%, suggesting they are adapting better to changing habits.
Graham Soult, owner of retail consultancy CannyInsights, said successful retailers like Uniqlo and Zara benefit from controlling their supply chains and being agile in getting new stock quickly. Online retailers such as Boden mix seasonal pieces with timeless items that can be worn year-round. However, the continuing fluctuation and downward trend in the value of the pound poses a new threat to all retailers, with price increases forecast.
