Is revenge shopping in the UK is already over? The quarter that closed on May 30th, recorded spending increments for fashion-related purchases equal to +64% that of 2020, when stores were already closed due to the lockdown. The difference from the same quarter of 2019 is of -14.6%. According to Bank of America’s analysts though, the trend in June slowed, which was something also perceived when looking at brands’ strategies. Even with the recovery of physical shoppers, Gap decided to close all 81 stores located in the UK and Ireland. Its distribution model will focus on the online channel.
How is revenge shopping going in the UK?
Bank of America writes that during the quarter from March to May 2021, fashion-related purchases increased by 64% on yearly base. According to MFF, women’s apparel went up by 60.9% (-17,9% on 2019), menswear by +63,8% (-16,9% on 2019) and children’s +73,5% (+2,1% on 2019). But things slowed down in June. “Compared to 2019 – believes BofA -, we forecast that fashion-related purchases during the last 4 weeks (June), have gone down by 8%. The general foot traffic inside stores has been picking up during the last few months, but it took a step back in June”.
Even so, the same bank had estimated in May that British consumers had 40 billion pounds ready to spend. The amount is equal to 1/5 of the total sum accumulated during the lockdown. The Bank of England, on the other hand, estimates that British consumers will only spend 1/10 of that amount on shopping, half of BofA’s estimate.
As a matter of fact, GAP…
Even with these positive forecasts, Gap announced that it will close down all 81 stores currently active in Ireland and England before September (19 of which before July’s end). The US-based brand will focus on online sales. Yet, Gap has said to wish to invest in Italy by opening more stores. One of its main partners could be OVS.