Saturday, 1 November 2008
Retail sales fall more sharply
Blacks Outdoors 5.2% down continuing the sad trend of falling retail sales.
John Lewis down 9.8% following Debenhams -6%.
Plenty of talk of big reductions for Christmas but it won't be quite what the commentators are talking up.
Currently retailers are putting out the Xmas stock and it will be coming out by the pallet load now Halloween is over. That's earlier than usual as stores hope to take your pound. That is, to take your pound from their rivals. The competition will be between shops and the losers will be the ones that start to slash prices.
But back to Blacks. Record numbers of UK families had a home isles holiday despite the awful summer weather. If anything they should have sold much more waterproofs. Media reported the "revival" of the outdoor sector but the reality is they are affected by the same factors as every other retailer.
Price..Quality..Desirability..Necessity. Blacks Leisure have realised that the boardwear fad may be over. They may want to dump it. Probably other clothing stores will follow suit and heavily cut back ranges that aren't safe"basics".
So jeans and a navy t/shirt and beige trousers and a plain jumper all round for spring.
Next may get a revival after all!
For retailers the interest rate can't come soon enough. With the pound so low clothing prices will skyrocket next summer.But many may not be around to worry if Christmas fails to ignite. The rate cut if its coming must come soon instead of waiting for another grandstanding World Leader opportunity.