This is the latest instalment in a new partner series with The Retail Score, presenting a first-of-its-kind Fashion Retail Index that tracks top-line performance across the clothing, footwear and accessories industry.
Fashion sales in June 2026 have come in at a very soft +0.4% like-for-like sales growth versus the same time last year, according to The Retail Score's Fashion Retail Index.
This is a significant reversal on the results we saw in May (+2.2%) and means that June 2026 was the lowest growth month recorded in the Index over the last 12 months.
Sales transactions and units were both up (+1.1% and +1.3% respectively), so shoppers were still active, but that did not translate to a significant movement on sales.
A breakdown of results by channel shows that only the Online channel managed to secure growth whilst physical store channels all declined. Online sales grew +5.5%, with a -4.9% drop in Concessions and a -2% drop in Outlets.
The -0.5% result for Standalone Stores, which represents the highest proportion of sales in the Index, is alarming.
The relatively soft sales number was significantly affected by retailers opting for aggressive discounting through the EOFY period cycle. The discount % recorded in the Index came in at an all time high 27.6%, up from 26% late last year.
The discounts depths through Concessions and Outlets certainly eroded revenue with the lift in volume insufficient to deliver sales lifts. Many retailers don’t quite appreciate that as discounts rise, the volume lift required to maintain sales $ parity increases exponentially.
The EOFY sales period is always a period of significant discounts, but the fact that they jumped the way they did suggests fashion retailers had excess stock they needed to move. We put this down to two major factors:
- A modest full year's trading meant retailers needed to lower stock on hand and recycle cash.
- A mild autumn/winter across the eastern seaboard resulting in softer sell thru of seasonal ranges.
Discounts themselves are not a bad thing, and a necessary evil in the fashion retail trade where excess stock can create larger problems if not addressed. What is most critical is how the margins hold up.
The tRS Index tracks margin too and this has been a bright spot for most fashion retailers over the last year, with margin growth running 2 percentage points higher than sales $ growth.
June however saw gross profit $ fall for the first time in 18 months. We believe this will be a blip, but we do expect to see more of the same discounting through July, so gross profit will be a key metric track through the next quarter.
A note from our sponsor: The Retail Score Index is open for all retailers to participate in. Those retailers who agree to share data with the Retail Score get the benefit of data updated weekly, every Monday evening. The data contains a broad range of measures that extend well beyond basic sales data and reports across multiple location segments, including postcode.
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