UK Fashion Sector Payment Practices: A Mixed Bag of Hems and Haws

While the UK fashion sector performs better than the national average for payment practices, a closer look reveals a wide disparity between the best and worst payers.

The Numbers

• Companies analysed: 35
• Average PaymentCheck Score: 63.4/100
• UK average: 50.0/100 (Fashion sector is 13.4 points above)

What Stands Out

The fashion industry’s average PaymentCheck score, at 63.4, suggests there's room for improvement, despite outperforming the UK average by 13.4 points. The significant spread between the top and bottom payers indicates that good payment practices aren’t universally adopted across the sector, putting some suppliers at considerable financial risk, which you can mitigate using a late payment calculator.

Best Payers

1. GAP EUROPE LIMITED - 96.96/100
2. NEXT RETAIL LIMITED - 89.21/100
3. INTIMATE APPAREL RETAIL UK LIMITED - 87.38/100
4. HARVEY & THOMPSON LIMITED - 86.4/100
5. VALUE RETAIL PLC - 86/100

Worst Payers

1. DKH RETAIL LIMITED - 20.84/100
2. C-RETAIL LIMITED - 24.84/100
3. ACCESSORIZE BRANDS LTD - 33.8/100
4. THE HUT.COM LIMITED - 38.55/100
5. REISS LIMITED - 42.02/100

Regional Patterns

The East of England, with a score of 81.8, has the highest regional average, but this figure is based on a single company, making it statistically less significant. London, with a sample of 13 companies, shows an average of 65.0, suggesting that the capital’s fashion businesses align closely with the sector's overall performance, while the East Midlands sits at 70.0 from 6 companies. The South East at 64.9, is comparable to London, but is based on a sample of 2 companies, making it less representative than London.

While the fashion sector boasts an average PaymentCheck Score of 63.4, the presence of companies like DKH Retail Limited, scoring a dismal 20.84, highlights the necessity for suppliers to thoroughly vet their clients to avoid damaging late payments.