U.K. retailers are plagued by excess stock as weather woes, stagnating incomes and Brexit-fueled economic uncertainty continue to roil the high street, trend forecaster WGSN reported on Friday.
As retailers continue to ramp up their e-commerce strategies, volumes of new womenswear have grown 9 percent year on year (YOY), WGSN said. But a squeeze on household budgets as a result of mounting inflation—plus an uptick in consumers who are choosing experiences over stuff—have lowered demand for discretionary items like clothing and footwear.
“Quite simply, this has led to a significant overstock in the market this season” with overall product volumes growing 6 percent YOY, said Emma Griffin, an analyst at WGSN. “Witnessed across the board, the recent news of Burberry and Nike burning leftover stock only emphasizes this catastrophic issue.”