MarketLine Blog

Fashion in supermarkets not supermarket fashion

The UK apparel retail industry has experienced fluctuating levels of low growth in recent years which may potentially make it less attractive to new entrants. During a time of financial crisis and low disposable income, consumers are less likely to buy expensive designer wear.

According to British national newspaper, the Telegraph, two-thirds of people reported living on less disposable income than last year (2012), and are trying to stretch out a low monthly expenditure budget of £192 ($304).

Supermarkets have been able to establish themselves during the economic downturn by providing cheap, good quality clothing. Increased numbers of customers have discovered that in their pursuit for value, they do not have to sacrifice quality when shifting to private labels, which tend to be significantly cheaper than their branded counterparts.

Supermarkets Tesco, Asda and Sainsbury’s have successfully made their mark within the apparel industry with their brands F&F, George and Tu. This has been achieved through a number of strategies including product diversification, segmented marketing, expansion in international markets, and increased online presence and TV advertisements. This has resulted in each supermarket to gain a strong consumer base for their clothing range.

It is important that supermarkets do not devalue their own range by offering too many incentives such as vouchers and discounts as this may affect consumer perception of the quality of clothing.

Players need to keep customers enticed and should re-position themselves as destination fashion retailers by getting shoppers to trade up to more expensive items. This strategy will increase revenues further.

For more, please read our business case study ‘Supermarket Fashion: A Growing Phenomenon‘.

Also explore our other products: Company ReportsSWOT Analysis ReportsIndustry Reports (Porter Five Forces Analysis)Country Analysis Reports (PESTLE Analysis), & Business Case Studies.

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