Affordable luxury the winner of London Fashion Week
Shoppers flock to spend during and after fashion week
18 March 2015: London Fashion Week drove sales at “affordable luxury” designers up by 31%, according to new data released today. Those showcasing collections in the same category, which includes Karen Millen, Hunter and Reiss, felt an even bigger uplift, with sales up 48% in the two weeks during and after London Fashion Week.
The event proved to be a boon for all designers showing their collections, with overall sales increasing by 22% in London. The sales impact shows that London Fashion Week made the biggest impression among those with the propensity to shop at premium fashion brands.
The figures are based on the spending data of 5.6 million UK bank consumers* and have been released by Cardlytics, an advertising and technology company specialising in card-linked marketing, which helps brands deliver rewards to consumers through their mobile and online banking services.
While affordable luxury was the clear winner, other fashion retailers felt benefits as well. Cardlytics data show that department stores, such as Harrods, Selfridges, John Lewis and Liberty, saw sales increase by 23%, driven by spend on high-end designers, which was up 27.1%. Meanwhile sales at premium fashion brands, such as Burberry, Christopher Kane and Matthew Williamson, increased by 11.5%.
Jill Dougan, Managing Director of Cardlytics, said: “Shoppers clearly take a great interest in what is happening on the catwalks. London Fashion Week makes a noticeable difference to fashion retailers, as well as the wider British economy. While the winner this year was affordable luxury, the sales growth felt by many designers shows that the event offers a real platform for engaging with customers.”
The impact of fashion week was felt online too. The proportion of premium fashion sales originating online increased dramatically, from 28% to 36%. Those living outside London were the biggest contributors to the online rush – the regions increased premium designer sales from 20.3% to 33.7%.
The benefits of London Fashion Week weren’t felt universally. The data show that mid-range shops, such as Topshop, Urban Outfitters and Oasis, are likely to have seen only a modest increase of 3% while fast fashion brands, such as H&M, TK Maxx and Primark, suffered a decrease in sales of 1.4%.
*Cardlytics does not have access to any personally-identifiable information such as name, age, gender, address etc. All customer level data remains behind bank firewalls.
Notes to editors
The figures are based on the spending data of 5.6 million UK bank consumers. Spend was tracked in the week during, and week following, London Fashion Week, and compared with the two weeks prior. Fashion retailers were split into categories by average spend: fast fashion, mid-range and premium (which was split between affordable luxury and high-end). Spend at department stores was also tracked.
Cardlytics is an advertising & technology company and the leader and pioneer in Card-Linked Marketing. Through partnerships with nearly 400 financial institutions, including Bank of America, Lloyds Banking Group, Santander and many others, the company has insight into consumer purchase behaviour, capturing spending across all stores and categories. Cardlytics’ patented technology allows advertisers to make a direct connection to millions of active buyers through multiple digital platforms, including their online banking and mobile banking applications. Cardlytics is headquartered in Atlanta, with offices in London, New York and San Francisco. The company is funded by leading investors in Boston and Silicon Valley, as well as a strategic investment from the world’s leading loyalty company, Aimia.
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