Customers do not pass by shop windows

Following the results of this spring, fashion chains noticed an increase in the number of customers in their stores. However, the average check continued to decline. To rectify the situation, retailers will try to encourage consumers to spend more through discounts and promotions. However, the networks do not rule out that in the event of a deepening crisis in the economy, Russians will first of all reduce spending on clothing and footwear.

In April-May 2023, traffic in clothing, footwear and accessories stores in Moscow grew by 8% year-on-year, Focus Technologies calculated. At the same time, the turnover of such points of sale over the same period increased by only 2% year-on-year due to the fact that the average check in the fashion segment decreased by 5%. The trend towards a reduction in the average check with an increase in traffic has been observed since the beginning of this year. Analysts estimate that in the first quarter the number of shoppers in stores in Moscow increased by 4% yoy, while the average check decreased by 2%.

The head of research and consulting at Focus Technologies, Mikhail Vasiliev, explains the increase in buying activity in April-May 2023 by the low base of the same months last year. At that time, the demand for clothing and footwear dropped noticeably after the rush demand in March, after the announcement by Western brands that they were leaving the Russian market.

Ilya Yaroshenko, president of Baon, says that in April-May of this year, traffic in the stores of his network grew by about 5%, while the average check decreased by 7%. According to him, the dynamics of the average bill was affected by the seasonality of demand. “For example, due to the early onset of warm weather this year, the demand for outerwear in the spring months was lower than last year,” explains Mr. Yaroshenko. He expects a possible increase in the average check in autumn and winter due to the increase in the cost of purchasing a new collection against the backdrop of an increase in the exchange rate.

Alexey Vanchugov, managing partner of Vanchugov & Partners, draws attention to the fact that international brands, due to low prices, allowed the buyer to collect a complete set of clothes and shoes within one store. For this reason, the average purchase receipt in such chains significantly exceeded those of Russian mono-brand clothing stores, the expert explains.

The situation is different for department stores, where there is an increase not only in the number of visitors, but also in spending on purchases. Stockmann CEO Gennady Levkin notes that sales in his department stores in May grew by 38% yoy, traffic – by 29%, and average check – by 3% yoy. Trend Island CEO Nikolai Konstantinov claims that the average check in the network’s department stores in April-May increased by 15% yoy, and turnover – by 30%.

Last year, there were almost no seasonal discounts, which affected traffic, says Gennady Levkin. According to him, some market players had difficulties with replenishing the assortment due to the refusal of some distributors to supply, and the existing goods were well sold out even without shares. Today, fashion retailers have built optimal supply chains and brought in a sufficient assortment for the summer season, so deeper average seasonal discounts and increased traffic in stores are expected, Mr. Levkin explains.

In general, consumer behavior is more stable this year, adds Mikhail Vasiliev. At the end of 2023, store attendance may remain at last year’s level or show a slight increase, Ilya Yaroshenko expects. However, he notes, the performance in the fashion segment is largely influenced by the overall situation in the economy: clothing is the first item of expenditure that consumers begin to cut at the next signs of instability.

Alina Savitskaya, Alexandra Mertsalova