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/ Talking Trade /

Head of retail, corporate advisory � rm Zolfo Cooper

Some improvement occurred helped by the bank holiday but demand was extremely mixed. Formalwear and mainstream brands outperformed while other categories struggled. For more information, email Don Williams, head of retail and wholesale at BDO, at don.williams@bdo.co.uk

Like-for-like sales figures across the high streetWeek ending May 6, 2012

Highest growth location (defined by % increase in tra� ic to DrapersJobs week on week)

The most applied for jobs

WEEKLY FOOTFALL RETAIL INDEX

HIGH STREET SALES TRACKER

DRAPERSJOBS.COMThe UK’s employment hot spot and the most popular roles

WEEK-ON-WEEK CHANGE YEAR-ON-YEAR CHANGE

As a percentage of total applications on DrapersJobs last week

-0.1%

+2.7%

We love a bank holiday and the prospect of May Day approaching looks to have brought warm sentiments to the National Index in week 18; a 2.7% week-on-week rise in shopper numbers was an excellent result given that the same period for the previous two years has shown a week-on-week decline. While there was little change in volumes compared with last year, this is a vast improvement on the performance of the last few weeks and ahead of the cumulative position of -2.9% for the year to date.

National UK footfall figures Week 18 – April 30 to May 6, 2012

LEEDS 9.6%

1. Design 9.1%

2. Production 7.1%

3. Sales 6.1%

4. Merchandising 5.4%

5. Buying 5.1%

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There has been some good news this week, with Next revealing that a surge in its online Directory business has helped to o� set a fall in � rst-quarter sales at its high

street stores, with the company’s total sales rising 1.4% in the three months to April 28.

This news shows what an important role a robust multichannel strategy can play for fashion retailers, despite some very tough economic conditions at the moment. Even though retail sales across Next’s 536 fashion and homewares stores fell 3.9%, its online and catalogue business clearly made up the di� erence here, delivering growth of 11.8%.

Marks and Spencer’s transactional website, M&S Direct, also delivered a strong performance with sales up 22.8% during the 13 weeks to March 31, 2012 compared with an increase in its overall UK sales of just 1.2%. Like Next, a number of interesting direct sales initiatives at M&S have helped to support this growth, including an online M&S Outlet store that is popular with cash-strapped customers.

House of Fraser has also announced plans to put greater emphasis on its multichannel strategy. In fact, the company has even launched an iPhone app to complement its main online shopping site. Like Next, House of Fraser may be able to protect itself against any weaknesses in its high street sales by o� ering alternatives like these, since this approach can be an e� ective way of giving today’s time-poor customers the convenience they are increasingly demanding.

All three of these retailers seem to understand that true multichannel retailing means more than just online sales. House of Fraser’s app, for example, not only makes ‘on the go’ shopping easier, but also enhances the customer’s in-store experience.

Customers can use the app to scan product barcodes in their local store to read product reviews, while a stock locator allows customers to select items online and then instantly check product availability in their local stores.

If convenience really is king for consumers, then this holistic approach to multichannel sales may end up providing UK retailers with the keys to the castle.

‘Multichannel can lift retailers out of the doldrums’_ Dan Coen

+1.7%

Footwear

Clothing

-3.2%Total fashion

+0.9%

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RETAIL OUTLOOKFOR THIS WEEK

The five top stories from around the globe

Coloured jeans help denim sales soar in womenswear sector

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60%

SALES & TRENDS

2011

2012Jeans sector share £%

RETAIL TRENDS

24 weeks ending March 18, 2012 versus 2011, according to Kantar Worldpanel Fashion

24 weeks ending March 18, 2012, versus 2011

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INDIA

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The acquisition is in line with our intent to create India’s largest, integrated branded fashion player Kumar Mangalam Birla, chairman, Aditya Birla Group

PANTALOON RETAIL in India is planning to spin o� its clothing business as a separate company and sell a majority stake to India-based Aditya Birla Group. The AV Birla Group will invest approximately INR800 crore ($150.7m) in a two-tiered transaction.

GAP has appointed Stefan Larsson, former head of global sales at H&M, as global brand president for Old Navy as the retailer takes the division overseas in July. Gap plans to open an Old Navy in Japan.

COLLECTIVE BRANDS announced that a consortium of buyers has entered an agreement to acquire the brand house for $2bn, including the assumption of debt. The group comprises Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital.

MACY’S, the US department store chain, reported sales rose 4.4% to $6.15bn in the � rst quarter of 2012 compared with last year. On a same-store basis, sales were also up 4.4% in 2012.

LIMITED BRANDS, the US brand house, reported comparable store sales rose 7% for the � rst quarter, while net sales dropped to $2.1bn, down from US$2.2bn last year. The declines were spread across the business.

USA

Growth in coloured jeans market

compared with last year

143% Size of coloured jeans market

£71m

In department stores we’ve seen a switch to own label and lower prices, with multiples keeping prices at a similar level. The value sector is upping pricesGlen Tooke, client executive, Kantar Worldpanel

Expenditure

£347m+15%

19mNumber of units

£18.59

+17%

Average selling price

-1%