The development in April was primarily driven by physical retail. Sales in physical stores increased by 2.9 percent for clothing and 1.1 percent for shoes. This contrasts with e-commerce, which had a weaker month for clothing, with a negative development of 3.4 percent. However, e-commerce for shoes showed an increase of 1 percent during the same period.
Premium Segment Stands Out In April
In the measurement of the different price segments, the largest increase was noted in the premium segment. Sales of clothing and shoes in the premium segment rose by 14.4 percent during the month compared to the same period last year. The low-price segment and mid-price segment showed a marginal increase of 0.5 percent and 0.2 percent respectively. Children's clothing and children's shoes also had a tough month and declined by a total of 10.1 percent.
Comments From Svensk Handel
Sofia Larsen, CEO of Svensk Handel, notes that growth has slowed down somewhat.
After a strong March, we are now seeing a more cautious development in April. At the same time, it is positive that fashion retail continues to resist relatively well, despite a continued uncertain global situation.
Regarding the growth of physical retail in relation to the decline of e-commerce in clothing, Larsen states that the physical store maintains its relevance for fashion consumers.
It is clear that physical retail still has a strong position in fashion. Many consumers still want to be able to try on, feel and be inspired in the store, and April shows that physical retail continues to be an important engine for the industry.
Svensk Handel further assesses that the economic space among consumers is gradually improving.
Consumers' purchasing power has strengthened, but many households are still cautious and think twice before shopping, says Sofia Larsen. Like many forecasters, we believe that household purchasing power will strengthen during the year, but this requires that the conflict in the Middle East does not have more serious consequences.