Fashion and beauty indies are surprisingly optimistic - report

By

Barbara Santamaria

Published
Feb 16, 2018

Despite several high-profile fashion chains struggling to keep afloat amid growing pressures in the retail sector, almost half of independent high street businesses see their future as “booming”, according to a new report.

Alternative finance provider Liberis surveyed over 350 high street business owners to find how they are faring in the face of online shopping. It found that, in general, independent fashion and beauty retailers feel satisfied with their business after complementing their in-store experience with an online presence.

Some 61% of those surveyed, including clothing and gifts retailers as well as bookshops and jewellers, think that having an online presence has been a positive development, and report strong trading in-store and online.

“As consumer behaviour evolves, the majority of high-street businesses are moving towards an integrated offline/online strategy. Ensuring that your customers can find you in both areas will give your business the support to scale, and the ability to cater to a larger, more varied audience,” said David Spickett, director of marketing operations and sales at Liberis.

Some 57% of those surveyed said business had remained “steady” over the last three years, with clothing and jewellery retailers among those reporting their best sales performance during this period. The report said 34% of these retailers are located in city centres, reaffirming the idea that areas with high footfall contribute to the success of a business.

Indeed, footfall and customer service were cited as the perks of having a physical high street location, while rent costs and business rates were almost unanimously identified by small businesses as their biggest challenge.

This sentiment could change in 2020 when new measures come into effect linking business rates with the consumer price index, rather than the higher retail price index, effectively  saving retailers an estimated £250 million.