MarketLine Blog

The rise of e-commerce in fashion in supermarkets

The increasing popularity of online retail has resulted in an increase in online purchases making it an attractive means for retailers to drive top line growth. Asda has boosted its presence in the online marketplace with its website direct.asda.com which offers a wide range of products including its own clothing brand, George.

Asda sells over one million products across ‘Asda Direct’ and ‘George.com’, it can utilize the opportunity to market its presence across the globe through Internet services and increase its customer base. Furthermore, enhancement of the internet service could increase the company’s sales by exploiting the rising popularity of online shopping.

Asda has announced expansion into Europe with its online retail division ‘George.com’. The supermarket giant will expand its delivery capabilities to 24 new countries, including Luxembourg, France, Belgium the Netherlands, Denmark and Spain.

In 2011, the online clothing business of Tesco in the UK extended its delivery service to international markets beginning with nations in the European Union. Tesco also launched a clothing website, www.tesco.com/clothing in 2010. Tesco is currently the fastest growing online retailer in the clothing, footwear and accessories market in the UK.

Sainsbury’s, which has yet to launch its clothing online, has been developing its Tu brand; while it is a much smaller apparel business than that of Asda and Tesco; the clothing division  is one of Sainsbury’s key growth drivers.

The superseding growth in online retail means that this is an area which Sainsbury’s needs to establish a significant presence; otherwise the company will lose consumers to competitors.

For a more in depth look, see MarketLine’s Case Study ‘Supermarket fashion: a growing phenomenon.’

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