UK Fortnightly Retail Recovery Report
Issue #3
Tuesday, 28th July 2020.
As UK retail emerges from months of lockdown, LovetheSales.com analysts reveal a mix of green shoots and warning signs for the sector based on consumer demand and the latest category discount figures.
Top Data Insights
Top 10 performing UK fashion retailers in July (based on sales)
Premium & high street brands report significant job losses in UK fashion
Christmas in July: Record number of shoppers search for early Christmas gifts
Stores have now been open and trading for more than a month with new customer rules in place, but which retailers have thrived out of lockdown? LovetheSales.com reveals the top 10 performing online retailers in July (based on sales), to shed a light on the fashion brands that are on the road to recovery.
Top 10 performing UK fashion retailers (data based on July sales v April sales)
1- Reiss +239%
2 - Boden +148%
3 - Mango +144%
4 - Topshop +120%
5 - Footasylum +117%
6 - Superdry +111%
7 - John Lewis +55%
8 - Joules +48%
9 - Dorothy Perkins +41%
10 - River Island +21%
Stuart McClure, co-founder of LovetheSales.com, commented “There are many struggling retailers in the UK today. However it is important to shine a light on the brands that are performing well out of lockdown. It’s great to see a healthy mix of standalone brands like Superdry and Boden as well as multi brand retailer stalwarts like Topshop and Footasylum generating a sales surge post lockdown. These are the retailers that are really leading the recovery for the UK fashion industry.”
High street and premium brands hit hardest - as record job losses reported for the UK fashion industry
The British Fashion Council has warned that as many as 240,000 jobs could be lost in the UK fashion industry over the next 18 months. This would amount to 27 per cent of the workforce that works in fashion being let go due to the coronavirus pandemic. LovetheSales.com delves into the fashion brands that were hit the hardest by the lockdown and are now reporting significant job losses.
Highest job loss count by retailer in the UK fashion industry
High street retailers account for 43% of fashion job losses
Premium retailers account for 47% of fashion job losses
Luxury retailers account for 10% of fashion job losses
Stuart McClure commented on the job loss data, “Premium and high street retailers have felt the most immediate impact of the lockdown, where we’ve seen ongoing fluctuation in online demand from consumers over the last few months. Although lockdown has been lifted, in store footfall has not returned to pre COVID levels and retailers are having to make hard choices. The drop in footfall has been a nightmare in particular for traditional retailers like Debenhams, which had been struggling long before the UK shut up shops in March.”
Christmas in July: Record number of shoppers search for early Christmas gifts
Shoppers are searching for Christmas presents earlier than ever before. In a year that many would like to forget, online shoppers are looking forward to more festive occasions and are on the hunt for Christmas gift deals as early as July.
Google searches for popular shopping terms like ‘Christmas gift ideas’ have increased by 90% in July, compared to a year ago. LovetheSales.com looks at the Christmas presents shoppers are searching for online.
Christmas gift categories with biggest increase in consumer search (July)
Action toys: +136% YOY
Board games: +122% YOY
Dolls and soft toys: +122% YOY
Luxury perfume: +119% YOY
Games consoles: +83% YOY
Stuart McClure commented on the Christmas shopping, “More shoppers than ever before are searching online for Christmas presents. LovetheSales.com is seeing huge increases in search terms for popular Christmas gifts, 5 months before the big day. In a year that most people would like to be over, Brits are looking forward to happier times ahead.”
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Issue #2
Tuesday, 14th July 2020.
Top Data Insights
Victoria’s Secret’s brick and mortar stores couldn’t deal with online competitors (GO TO DATA)
Huge spike in demand for holiday clothing as restrictions lifted on travel (GO TO DATA)
Retailers discount record levels of summer fashion (GO TO DATA)
Leicester lockdown: Residents shop online for lockdown essentials (GO TO DATA)
Victoria’s Secret’s brick and mortar stores couldn’t deal with online competition
Victoria’s Secret announced in June that 25 of its brick and mortar stores in the UK will close, as the UK arm of the business collapsed into administration. The e-commerce operations of the US lingerie brand will continue and will not be affected by the administration.
One reason for the brand’s high street collapse is the shift in consumer behaviour. More shoppers than ever are buying lingerie products online. LovetheSales.com reported in April that demand for lingerie online had increased in the UK by 50%, compared to April 2019. Globally, lingerie was a booming business in lockdown and the coronavirus has converted many high street shoppers to online addicts.
Victoria’s Secret had been reluctant to invest in an efficient online model for the UK, using its US based inventory to satisfy UK shoppers. This meant a huge increase in delivery times and shipping costs in a market where UK shoppers value ‘ease of delivery’ over the actual price of an item.
Stuart McClure, co-founder of LovetheSales.com said of the closure,
“Victoria’s Secret had one leg in and one leg out of the UK market. They focused their efforts on brick and mortar stores in high rent locations, across the UK.”
“And with no UK focused website, online shoppers were left having to pay £8 for delivery, waiting over a week for products to arrive.”
“The shift in online shopping has certainly impacted Victoria’s Secret, and many of their store customers would have looked elsewhere online, during the three month lockdown, because the demand was most definitely there as our figures show.”
Huge spike in demand for holiday clothing as restrictions lifted on travel
On Friday (10.07.20) the government lifted the travel ban on 59 countries, meaning Brits wouldn’t have to self isolate to and from these destinations. The anticipation of the easing of travel restrictions announced at the beginning of July, has had a major and almost immediate impact on shopping searches. The public are trading in their lockdown sweaters for swimwear, with big increases in demand for holiday clothing.
Stuart McClure, co-founder of LovetheSales.com, spoke of the surge in sales on holiday clothing,
“Many of us would have counted out the idea of a summer holiday back in April, but the news from the government has been a welcome one for online shoppers.”
“We are seeing consumers flocking online, on the hunt for fresh holiday wardrobes. For the first time this summer holiday clothing has overtaken stay-at-home fashion and we don’t see this trend stopping anytime soon.”
Our data team has been tracking specific consumer searches around summer clothing to uncover a list of top trending summer fashion. Stylist Jessie Stein spoke to LovetheSales.com on the trending summer fashion figures,
“Tie dye has been one of the surprising trends of lockdown, and this is carrying over into our holiday clothing. The colour tie dye brings to an outfit makes it a perfect choice to include in a summer wardrobe.”
“Linen is everywhere at the moment, it’s comfortable, lightweight and looks amazing in neutral summer colours. We are searching for everything linen, whether it is shorts, trousers or jumpsuits. I can imagine a lot of holiday goers picturing themselves in wide white linen trousers, walking along the coast of a Greek island.
“Thick oversized glasses give a super glamorous feel to an outfit, and holiday goers will be looking for a bit of glam this summer. Women will be channeling their inner Hepburn with this trend.”
“Thick comfy sandals have officially overtaken the dreaded flip flop. Usually coming in earthy colours, they match well with shorts & dresses, whilst giving more feet freedom on holiday than heels or flats. Working with the Love the Sales data team, they tell me that demand for Birkenstock sandals are up 23% year-on-year, and I’m not surprised people are falling in love with the comfy shoe.”
Retailers are placing huge discounts on holiday fashion
Online retailers have also welcomed the news from the government and have been preparing huge summer savings on holiday clothing, in order to boost sales. The big retailers are desperate to shift built-up summer stock from the lockdown with some fashion brands sitting on billions of pounds worth of clothing. The volume of online discounts retailers are offering on their summer clothing is up 22% in July, compared to July 2019.
Stuart McClure spoke on retailer’s summer discounting frenzy,
“Retailers have been suffering in sales since March, and billions of SS20 stock is gathering dust in warehouses. The lifting of travel restrictions from the UK government is a potential lifeline for many fashion retailers, as they try to shift as much overstock as possible before the end of summer.”
“We’re seeing levels of discounting bigger than most summer sales in years gone by. It has never been a better time for shoppers to update their summer wardrobes, with some retailers discounting up to 80% off the price of summer clothing.”
Leicester lockdown: Residents shop online for lockdown essentials
Leicester became the first area subject to the new local lockdown laws on July 4th, following a spike in Covid-19 cases. Whilst the rest of England are able to head to the shops, Leicester residents are still confined to their homes. As a result, LovetheSales.com has tracked huge spikes in online traffic from Leicester, searching for lockdown essentials.
Stuart McClure commented on the surge in online shopping,
“The nationwide lockdown caused a seismic shift in consumer behaviour, transforming many physical shoppers into online purchasers.”
“It’s incredibly difficult for Leicester residents to know when their local lockdown will be lifted. We are seeing huge uplifts in searches for goods that make lockdown life easier, coming from the Leicester region.”
Issue #1
Wednesday, 1st July 2020.
Top Data Insights
Demand for high street, premium & luxury brands (GO TO DATA)
Which retailers have the biggest summer sale on womenswear & menswear? (GO TO DATA)
Top 10 ‘luxury brands’ online shoppers want to see in the sales (GO TO DATA)
Demand for high street and premium clothing spikes in response to sluggish physical trading
Over the last fortnight, shoppers have been returning to the high street, but footfall is still down 54% YOY. But it’s not all doom and gloom, Lovethesales.com analysis shows that high street and premium brands are seeing online demand spike 22% and 19% respectively, compared to June 2019 figures.
The high street has had a rough few months with online demand for brands such as Topshop and Zara in the doldrums during lockdown, but now the public is on the hunt for high street brands.
Stuart McClure, founder of LovetheSales.com commented on the latest figures: “With outdoor life opening up and the promise of trips to the pub and restaurants on the cards come July 4th the British public is on the hunt for summer clothing and the ease of high street staples - summers dresses, shorts and tees. High street brands should take note, online demand is there and needs to be capitalised upon now.”
Demand for high street brands: +22% YOY
Demand for premium brands: +19% YOY
Demand for luxury brands: no change YOY
Karen Millen, Coast and Miss Selfridge lead the way with big discounts to entice shoppers
As the high street opens back up many clothing brands are vying for a share of spend in June - retailers are upping the range of products they have on sale as well as the size of the discount on offer.
Womenswear stalwarts Karen Millen and Coast are discounting 100% of their online stock with Miss Selfridge and French Connection close behind. Coast is also leading the way with the biggest average discount on items (51%.)
Which retailers have the biggest summer sales for womenswear?
Biggest womenswear sales June 2020 (% stock on sale)
When it comes to men’s fashion, French Connection is way out in front with 84% of its online range currently on sale. TM Lewin’s are offering the best Menswear deals online, their sale items currently offer an average discount of 58% off the RRP. Currently sitting 4th in the list, TM Lewin have 74% of all online stock discounted.
Biggest menswear sales June 2020 (% stock on sale)
Burberry revealed as #1 ‘luxury brand’ online shoppers search for in the sales
The high street may have been open for business for more than a week now, but the fashion industry is still facing an unprecedented excess inventory problem, overstock from spring/summer 2020 collections is estimated at €160 billion worldwide and €60 billion in Europe alone. New data from LovetheSales.com reveals that a solution lies in the unabated demand for online discounts on certain clothing brands.
Consumers are searching for Burberry sales five times more than Italian and Spanish rivals Versace and Balenciaga. Moncler and Kenzo also take top spots for the most desired discounted luxury brands.
Top 10 luxury brands online shoppers want in the sales (% Percentage of search focussed on discount)
(Tracked across 93m luxury fashion searches during lockdown in 2020)
The most searched for discounted items from the luxury brands were not clothing but accessories. Consumer demand for discounted investment pieces has never been higher. The handbag category proved most popular above searches for discounted shoes.
The highly desirable Gucci Dionysus was the most in-demand handbag. Footwear by Balenciaga has also been a firm favourite in sales searches during the crisis - its Speed Lace-Up Sneakers were most in demand.
To acquire the latest fashion data or to partner with LovetheSales.com simply sign up below.
LovetheSales.com is a global marketplace for shopping discounts, the platform partners with more than 1,000 UK retailers.
LovetheSales.com stores data from more than 16,000 high street, premium and luxury brands that appear on the site.
Examples of brands by category:
High street brands: River Island, Topshop
Premium brands: Calvin Klein, Ralph Lauren
Luxury brands: Burberry, Gucci