The current climate of austerity and lack of consumer confidence
continues to have an adverse effect on fashion retailers which is
expected to last in to the foreseeable future. This has forced price
warfare on the High Street and the cost to the consumer to purchase
fashion items reached a record low back in June 2009. 60% of retailers
this year, in comparison to 40% in 2009, opted for major reductions on
their ranges, most notably on ladies’ wear items. This leaves retailers
with the added dilemma of now having to compensate for current deficits
in profits later in the year, particularly during the annual Christmas
rush.
Richard Lim of the British Retail Consortium has summed up the situation
facing fashion retailers, saying, “Promotions are at an all time high.
Yes, ultimately margins have been compressed as retailers discount and
use promotions to drive sales. In the future there is a lot more
uncertainty as to whether consumer spending will stay on an upwards
trajectory and it is uncertain how this will impact on the earnings of
retailers.â€
Fashion retailers themselves have endeavoured to stave off negativity
and remain optimistic, citing spells of good weather earlier than usual
in the year and an earlier Ramadan as the reasons they have chosen to
prematurely offload stock. However, it is likely that ‘year round’ sales
will remain an indefinite fixture in fashions stores across the country
in order for them to retain their market shares and combat collective
reduction in consumer spending power.
Shop equipment suppliers offer retailers a wide range of sale and
promotional specific shop fittings and related products to help stores
achieve their essential revenue share. At Morplan, our comprehensive
range of shop fittings includes merchandise units, gondolas, shoe racks,
garment rails and ladder display units, which are an attractive
alternative to the traditional mannequins.
