April is the cruellest month, UK retail trade data reveal

Bad weather comes against a backdrop of consumer uncertainty

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3 MIN READ

London: Sir Stuart Rose, the former chairman and chief executive of Marks and Spencer, once quipped that "weather is for wimps".

But the high street bellwether is expected today to hint at difficult conditions on the high street after a dismal April and May, although it will not formally update on current trading.

"Weather is a cliché in UK retail," says Richard Hyman, strategic adviser to Deloitte. "But it is no less significant for being so. It is undoubtedly a factor. It makes a difference to footfall and behaviour."

Several people familiar with the situation suggest that the poor trading in womenswear that M&S experienced in the final quarter of its financial year has continued. Menswear is performing better, they suggest.

But M&S is not the only clothing chain finding life tough. "The weather is killing us," says another senior retailer.

The British Retail Consortium (BRC) and retail data specialist Springboard said yesterday that shopper numbers in the three months to the end of April were 2 per cent lower than a year ago.

Britain's high streets were hit particularly hard with footfall down 12.6 per cent in April.

The unseasonably cold temperatures and incessant rain come against a backdrop of increased uncertainty among consumers, bombarded with bad news about the Eurozone and rising fuel prices.

At the moment, the British need an excuse to spend, says the chief executive of a big store chain.

Another senior retailer says that the way people shop for clothes has changed, which makes them much more sensitive to factors such as daily temperatures.

"For the last 15-20 years, consumers have become more and more event driven, so they only buy when they need to and everything is immediate," he says.

"Shops are open longer in the evening; you can order over the Internet. People are not doing what they did 20 years ago, going to London for their big shop. If it gets hot, people nip out and buy clothes."

Sunny window

The summer season, he says, is becoming "more and more driven by those two to three weeks you get when the sun comes out".

The situation is made even worse this year by the fact that the recent cold weeks compare with the period a year ago when Britain was enjoying soaring temperatures with Easter and a royal wedding thrown in.

This makes yearly comparisons even more painful for store groups.

Some relief for clothing retailers could soon be at hand. The comparisons with last year are now becoming easier. Moreover, the weather is forecast to improve this week.

Some retailers say they have already adapted their ranges to meet recent demand.

Andrew Moore, head of Asda's non-food business, says its George clothing arm was able to bring forward stock that was due to come in later in the year, including zip-through hoodies, on trend in bright colours.

"We managed to pull forward £6 million (Dh34.85 million) of stock we could get in May to cover the poor weather," he says.

The cool temperatures are, however, good for shopping centres, with covered malls the only category to record a rise in shopper numbers in April according to the BRC. It was also good for categories such as electricals and furniture.

But if the sun does not begin to shine soon, clothing retailers could be forced to start summer sales early, or introduce other discounts.

Already, the high street is peppered with special offers, such as 20 per cent off women's dresses at M&S, and 20 per cent off some sandals at Hobbs.

"If the weather stays bad in May and it goes through to June, then we will see some sharp discounting, because people will need to stimulate demand," says Neil Saunders, managing director of Conlumino, the retail consultancy.

Nick Bubb, an independent retail analyst, recalls the summer of 2007 when the weather stayed cold and wet for the entire summer. However, he notes that the economic backdrop was more favourable five years ago.

— Financial Times

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