Report Summary

Period covered: 02 February – 01 March 2025

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Clothing & Footwear Sales

Clothing sales rose by xx% YoY, while Footwear sales fell xx% YoY in February, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). 

Prices fell 0xx% YoY (ONS), the weakest since October 2021, reflecting promotions in women’s apparel.

Key sales drivers

Clothing & Footwear sales’ performance in February reflects several upside (+) and downside (-) factors including:

New Year clearance(+): Many apparel retailers extended New Year clearance into early February as they sought to clear stock. The clearance sales helped support volumes but likely at the expense of margins.

Winter weather(-): February’s weather was cold and dreary, hurting sales of new-season apparel and footwear.

Half term holidays(+/-): The half term holiday in mid-to-late February had mixed effects. Family-oriented retailers reported a slightl uptick in footfall as families visited shopping centers during the break, but retailers competed with the leisure and entertainment sectors for spend.

Boost to confidence(+): Consumer confidence rose two points to -xx in February, driven by better expectations around personal finances. All five measures of confidence increased.

Upcoming tax increases

Retailers are facing cost increases in April as the government increases employers’ National Insurance, with bellwether Next saying in its annual results statement it is concerned about the impact on confidence: “We expect the UK tax rises in April to weaken the UK employment market and negatively impact consumer confidence as the year progresses.”

Chief executive Lord Wolfson added at the retailer’s recent results presentation: “The one thing I’m concerned about is the strength of the employment market, which has really carried the UK economy through the past five years.”

Growth in 2025

Next flagged international markets as a key source of growth for the business in 2025, after its 2024 results “significantly outstripped” expectations.

This is a strategy many UK clothing and footwear brands have been prioritising for several years as domestic demand remains sluggish, and new research from Retail Economics has found that luxury brands and the apparel sector are driving international expansion plans for 2025.

Luxury brands’ higher margins, strong brand appeal, and resilient customer base mean they are helping to lead the charge, while apparel retailers are seeking growth abroad amid domestic saturation and competition.

The research also explores how shopping behaviour has changed since the Covid pandemic, with xx% of shoppers saying there has been no long-term impact on their online shopping habits as a result of the pandemic.

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Retail Economics Retail Sales Index, value, non-seasonally adjusted.