UK services surge offers digital momentum for fashion sector
For fashion and retail executives, this rebound is significant. Services growth encompasses key digital enablers, e-commerce platforms, supply-chain logistics, marketing agencies, and tech providers, crucial to operational efficiency. With online sales now contributing to approximately 45 percent of global fashion retail and 70 percent of brands planning increased digital investment, the PMI data reinforces the strategic importance of bolstering digital ecosystems.
This momentum arrives as markets anticipate a Bank of England rate cut in August, trading at an over 80 percent probability according to the FT, which could unlock investment capital for digital transformation. Indeed, apparel brands have already increased spending on e-commerce tech (43 percent year-over-year), AI (60 percent), AR-enabled virtual try-ons (68 percent), and 3D product visualization (54 percent), according to data from Gitnux
However, employment in the services sector declined for the ninth month, hinting that productivity gains are being driven by technological upgrades rather than labour expansion. For fashion firms, adapting to this technological turn means prioritising partnerships with digital service providers, from logistics platforms offering on-demand warehousing and cross-border payments to AI-driven customer-service cohorts.
Implications for the sector: E-commerce and logistics
With cross-border marketplaces flourishing and automation gaining traction, retailers can leverage lowered costs to refine fulfilment and returns. Consumer engagement
Algorithms and virtual tools like AR try-ons and styling assistants are no longer niche—they're expected. Nearly 70 percent of brands now view AI personalization as crucial . Operational resilience
Service-sector digitalisation offers a buffer against economic volatility, allowing fashion brands to scale selectively without overextending headcount.
As UK services rebound and digital spending accelerates, fashion executives should view infrastructure investment not as a cost, but as core capital. The lines between fashion brand and digital platform are blurring, and those that invest wisely will navigate swiftly through this evolving landscape.
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Asked if there was an explicit policy to phase-out Clydesdale Bank notes, a spokesperson for Virgin Money said: 'No, we continue to issue notes to meet demand.' NatWest Group, which includes RBS, was also approached for comment. Delnevo added: 'We're being pushed towards a cashless society despite the fact people don't want it. 'We did a poll recently and 71 percent of people, including Scots and people in England and Wales, want a law passed guaranteeing their cash will be accepted. 'When LINK, the ATM network, did a survey, they found over 80 per cent wanted to retain the option of using cash. There's no desire amongst the public to see a cashless society. 'But there are whole areas of Scotland that have been completely denuded of bank branches and bank ATMs and it's very hard to get Scottish notes. 'People's cash access in these parts of the country is hanging by a thread.' Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. He used one example of Campbeltown in Argyll and Bute where there is a single bank branch, run by Virgin Money. He added: 'Apart from that, there wasn't another bank branch within 50 miles, and this was on the Scottish mainland.' Some of the most vulnerable groups in the country rely on cash, including many people with disabilities - either because they do not have access to a debit card, or because someone else controls their money. Delnevo added: 'It's a massive problem. There are 16million disabled people in the UK, 13million older people over 65. 'There are 4million people living in abusive households and cash is an escape route because they can use cash secretly whereas they can't do that with debit cards or credit cards. 'Millions of people would be impacted by the loss of cash.'
