Making sense of the past seven days

Yesterday’s ONS retail sales data provided the hard statistical evidence for what everybody in the industry knew: it’s tough out there.

The fall in sales volumes was the first for nine months and followed a warning from the Bank of England about a likely “sharp slowdown” in the consumer economy.

The problem with such surveys and forecasts is that, accurate as they may be, they can provide excuses for underperformance. Rather than upping their game, retailers – from the boardroom to the shopfloor – can be tempted to take a fatalistic view.

Both John Lewis chairman Charlie Mayfield and Marks & Spencer chief executive Stuart Rose have warned lately of the risk of talking the industry into recession.

Asda boss Andy Bond took up the theme this week. He said: “With interest rates and the increased cost of Christmas, customers are feeling the pinch. But retailers should stop blaming this, wet weather or consumer confidence for their sales performance – it’s a load of humbug. At Asda, our job is to make products more affordable – not moan about the state of the economy.”

Of course, there was a healthy quotient of self-promotion in his comments, as would be expected from any retailer worth his salt. But the point was well made.

DFS founder Lord Kirkham made a similar point in his column in this week’s issue of Retail Week. He wrote: “I’ve survived some pretty tough patches in nearly 40 years of retail and delight in knowing that even in the harshest of times spring opportunities for those who remain alert and react quickly and creatively.”

When times get tough, the tough need to get going. As the golden quarter gets into full swing, retailers will need to be on the front-foot to woo consumers. No matter how the sector does as a whole, the best will manage to outperform.

Some light relief

Amid all the gloom, fashion groups including Arcadia and Marks & Spencer provided some light relief as they showed off their new season’s lines this week.

The events were a reminder that fashion retail, even in difficult conditions, is great fun. Trend spotting, translating the looks from catwalk to clothes rail, creating fantastic product and – everybody hopes – watching it fly off the rails are massively rewarding.

Fashion is completely frivolous and life-enhancing and invaluable for just those reasons. Retailers are often unfairly criticised for their effect on society, but what can be better than helping people look great and feel better about themselves?