We’ve been closely following the British market ever since the UK voted to leave the European Union last June. Since Brexit, the luxury market in the country has been somewhat volatile, changing along with the political climate. (Read: Brexit… and Bags and The UK’s Currency Woes Continue)
Now, we have more to report! According to the Business of Fashion, fashion retailers in Britain just endured their worst July in eight years…
Overall, there’s been a 3.5% fall in fashion sales in the country. It’s clear that consumers are cutting back.
As Reuters put it, “Britain’s economy has slowed as the rise in inflation since last year’s Brexit vote and modest pay growth have squeezed consumers’ real earnings.” The Bank of England cut its growth forecast last Thursday.
“While June’s sunshine demonstrated that the sun can whet consumer appetite for shopping, poor weather at the end of July combined with consumers starting to feel the pinch took its toll on fashion last month,” said Sophie Michael, head of retail and wholesale at BDO, an accountancy and business advisory firm. ”It is apparent that shoppers are diverting their attention to essentials and tightening their belts … The results imply that the road ahead may be even more challenging than expected.”
This is just the latest chapter in a series of developments surrounding the British fashion market. Catch up on our old articles and stay tuned for more updates on the UK market…we’ll continue to follow it closely x
What do you think about the current political and economic climate in Britain? Are the luxury market’s woes going to continue, or does the market still have the chance to improve in this new age of British politics? Let us know!
Read Related Articles Below:
Brexit… and Bags
Part 2: Buying Bags After Brexit
Part 3: Brexit and the Asian Market
Chanel Increases Prices to Compensate for Brexit
Burberry Struggles to Improve Despite Boost from Brexit
The UK’s Currency Woes Continue