Fashion – Retail Gazette https://www.retailgazette.co.uk Fri, 03 Jan 2025 09:45:23 +0000 en-GB hourly 1 https://www.retailgazette.co.uk/wp-content/uploads/2024/02/cropped-rg-logo-32x32.png Fashion – Retail Gazette https://www.retailgazette.co.uk 32 32 Shein and Temu called for questioning over labour practices https://www.retailgazette.co.uk/blog/2025/01/shein-labour-practices/ https://www.retailgazette.co.uk/blog/2025/01/shein-labour-practices/#respond Fri, 03 Jan 2025 09:45:23 +0000 https://www.retailgazette.co.uk/?p=179228 Shein and Temu have been called for questioning by a parliamentary committee over the rights of workers in its supply chain.

The cross-party Business and Trade Committee has requested the presence of representatives from the two online giants to appear before them in a hearing on 7 January, Reuters reported.

The committee, chaired by former Labour minister Liam Byrne, is investigating the government’s flagship employment rights bill in the context of protections for British workers.



It is also looking at how to ensure adequate protection against importing poor labour standards, including concerns over forced labour.

Shein’s general counsel for Europe, Middle East and Africa Yinan Zhu and Temu senior legal counsel Stephen Heary has been called to be a witness, an update on the committee website showed.

The hearing comes as it was reported last month that Shein is still waiting for the UK’s financial regulator to approve its IPO after it received challenges about the fast fashion giant’s supply chain.

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End Clothing plunges £43m into the red after warehouse troubles https://www.retailgazette.co.uk/blog/2025/01/end-clothing-43m-loss/ https://www.retailgazette.co.uk/blog/2025/01/end-clothing-43m-loss/#respond Fri, 03 Jan 2025 09:14:35 +0000 https://www.retailgazette.co.uk/?p=179225 End Clothing swung to a loss last year following a botched warehouse overhaul and a slowdown in demand that forced the business to cut its prices.

The streetwear retailer’s parent company Ashworth & Parker posted a pre-tax loss of £43m in the year to end of March, down from a £9m profit the year before, as sales slipped 3.8% to £212.7m, The Times reported.

The loss came mostly from impairments linked to the implementation of a new stock system in 2022, which End Clothing said last year had created logistical problems preventing it from shopping products and leading to a multimillion-pound write-off.



Accounts filed on Companies House show consultancy costs incurred to fix the problems and costs related to removing old stock.

The retailer said it had taken steps to reduce its stock intake throughout the year to “de-risk” its inventory exposure. It closed the year with £62m of stock, down from £92.7m.

It added that softer consumer demand required the business to increase its promotional activity to shift stock.

End Clothing said that it was seeing “significant efficiencies and improved service levels” under its new warehouse system. “Inventory is now at very healthy levels and we are focusing fully on new season trading for SS25.”

The brand switched hands late last year, when private equity giant Apollo acquired the business in October from The Carlyle Group.

Apollo had helped to finance The Carlyle Group’s purchase of a majority stake in the brand back in 2021, which valued the business at £750m.

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First look: Zara opens ‘significantly upsized’ Liverpool ONE flagship https://www.retailgazette.co.uk/blog/2025/01/zara-opens-liverpool-flagship/ https://www.retailgazette.co.uk/blog/2025/01/zara-opens-liverpool-flagship/#respond Fri, 03 Jan 2025 08:08:38 +0000 https://www.retailgazette.co.uk/?p=179212 Zara has opened the doors to “its significantly upsized flagship” on upper and lower South John Street at Liverpool ONE.

The Spanish fashion giant’s new 42,000sq ft store has increased in size by 55% from 27,200sq ft – housing a larger collection of Zara’s menswear, womenswear, and childrenswear across two floors.

The retailer said that “together with a more spacious interior, the flagship places the customer experience at the forefront, adopting the brand’s latest innovative technologies such as self-service payment facilities”.



 

Liverpool ONE asset management director Rob Deacon said: “Liverpool ONE is defined by its leading mix of brands and ability to deliver the best of the best, and the opening of Zara’s significantly upsized regional flagship is the perfect example of this.

“Demand for Liverpool ONE is at an all-time high, with leading brands recognising its appeal as a destination for flagships and showcase spaces.

“2024 was a milestone year for big-name signings and 2025 will be our biggest year for openings yet, with Uniqlo, Sephora and TFG London set to make their debuts.”

The Liverpool ONE store revamp aligns with Inditex’s strategy of creating larger flagship stores for Zara, featuring enhanced brand experiences such as expanded product ranges and digitally enabled services.

The expansion also increases the total trading footprint of Inditex-owned brands within the scheme to 68,000 sq ft. Other group companies at Liverpool ONE include Bershka, Stradivarius, and Pull&Bear.

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Laura Ashley acquired by Ben Sherman owner Marquee Brands https://www.retailgazette.co.uk/blog/2025/01/laura-ashley-marquee-brands/ https://www.retailgazette.co.uk/blog/2025/01/laura-ashley-marquee-brands/#respond Fri, 03 Jan 2025 07:30:53 +0000 https://www.retailgazette.co.uk/?p=179208 Laura Ashley has been acquired by New York-based brand accelerator Marquee Brands, the owner of 17 brands including Ben Sherman, from global asset specialists Gordon Brothers.

The deal will see Laura Ashley’s UK-based team retained as part of a strategy to expand Marquee Brands’ global footprint.

The move includes the opening of its first European headquarters in London and increases the retail value of Marquee Brands’ portfolio to $4bn (£3.23bn).

Marquee Brands CEO Heath Golden said: “Laura Ashley’s licensed business model and robust group of high-quality partners makes the brand a seamless addition to Marquee Brands. We are excited to harness the strong affinity for this iconic brand and drive expansion across new platforms and partnerships.

“With the existing UK team in place, we are primed and ready to leverage Laura Ashley’s seven-decade legacy to unlock its future potential as a full lifestyle brand innovating new products and categories, offering unique collaborations and engaging multi-generational audiences in key markets worldwide.”



Gordon Brothers rescued the brand from administration in 2020 when it acquired Laura Ashley’s global brand, its archives and related intellectual property.

Gordon Brothers head of brand Tobias Nanda added: “As a firm that actively invests in and revitalises iconic brands like Laura Ashley, we acquired the British heritage brand out of insolvency in 2020 and built a flexible, scalable licensing business and a global e-commerce presence over the last four years.

“We could not be prouder of Laura Ashley’s growth under Carolyn D’Angelo’s leadership, the former president of Laura Ashley, and know the brand is in the right hands for continued global growth under Marquee Brands’ leadership.”

The acquisition of the British fashion and lifestyle heritage brand follows Marquee Brands’ bolstering of its executive team over the past year, with key appointments including Rachel Terrace as chief commercial and growth officer, John Hayes as chief financial officer, Joseph Zarro as chief business development officer, and Natasha Fishman as chief marketing officer, to drive expansion.

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Barbour profits rise 15% despite ‘relentless’ financial pressures https://www.retailgazette.co.uk/blog/2025/01/barbour-profits-rise-15/ https://www.retailgazette.co.uk/blog/2025/01/barbour-profits-rise-15/#respond Thu, 02 Jan 2025 12:15:39 +0000 https://www.retailgazette.co.uk/?p=179195 Barbour has seen operating profits rise 15% for the year to 30 April 2024, reaching £39.5m, up from £34.3m the previous year.

Despite a 6% drop in turnover, which fell to £322m from £343m, the British fashion retailer managed to boost its profits thanks to effective cost-saving measures and favourable foreign exchange rates amid what it described as “relentless” cost and pricing pressures.

The company attributed the decline in turnover to a “challenging” wholesale market and rising costs.

“Our long-term strategy remains consistent and relevant, dedicated to the vision of being recognised as a trusted and leading British global lifestyle brand with distribution channels via wholesale, retail, ecommerce and licensing,” said the heritage brand.

“We always strive to deliver excellent service, remain steadfast in our commitment to the heritage and ethics of our brand, supporting sustainable recovery and long-term growth in line with our vision and values.”



In a bid to strengthen its presence in the Asia-Pacific region, the retailer opened a fulfilment centre in Singapore during the year. This move aims to better service demand in the area, which is increasingly important for the brand.

Following the results, Barbour group managing director Steve Buck said: “Twelve months ago, we anticipated that global markets would be very challenging and made the decision to focus on high-quality, profitable sales.

“This strategy has worked very well in generating strong demand for the brand with increased efficiency and profits. This approach is very much in line with the long-term view taken by the business.

“While demand for our brands has remained strong, there has been a general retraction in the UK wholesale market with several major retail and ecommerce closures.

“We have worked closely with all of our wholesale partners to focus on building quality, profitable sales during this time. This strategy has also set the brand up very well for future growth, which we are already beginning to see.”

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Quiz losses double as it eyes stock market exit https://www.retailgazette.co.uk/blog/2024/12/quiz-losses-double/ https://www.retailgazette.co.uk/blog/2024/12/quiz-losses-double/#respond Mon, 30 Dec 2024 09:18:30 +0000 https://www.retailgazette.co.uk/?p=179125 Quiz has revealed its half-year losses have more than doubled as it warns it will run out of cash by early 2025.

The fashion retailer said the “disappointing level of revenues” in the run up to Christmas has meant the cash headroom available is “less than previously anticipated” and that it will need additional funding in early 2025.

The warning came as Quiz reported its pre-tax losses had deepened from £1.5m to £4.7m for the six months to 30 September.

Sales fell 7.5% to £39.1m, which it attributed in part to a “marked decline in traffic both online and in-store” last month.



Revenue from 1 August to 30 November amounted to £24.9m, a £1.5m reduction on the prior period.

Quiz said: “While demand in December has shown signs of improvement with online revenues broadly consistent with the prior year on a like-for-like basis, sales in store continue to trend behind those achieved last year”.

As a result, it noted that sales in December “continue to fall short of management’s expectations and have not compensated for the shortfall in revenues experienced in November”.

The retailer currently has £500,000 in total liquidity headroom, more than half of the £1.2m it had at the start of the month.

Quiz is currently seeking approval from shareholders for its plans to delist the company from London Stock Exchange and re-register it as a private company at its next general meeting on 8 January.

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Best of 2024: How Clarks is blending heritage with innovation to remain relevant https://www.retailgazette.co.uk/blog/2024/12/interview-clarks/ https://www.retailgazette.co.uk/blog/2024/12/interview-clarks/#respond Mon, 30 Dec 2024 08:00:32 +0000 https://www.retailgazette.co.uk/?p=157647 Clarks may be approaching its 200th anniversary next year, but the footwear giant isn’t harking back to the past – it’s focusing on the new, as it looks to attract new customers through innovative designs and exclusive collaborations.

The team leading this push for the Somerset-headquartered firm has a distinctly international feel. French footwear veteran Olivier Motteau leads the retailer’s European business and comes with spades of experience having led New Balance across Europe. Prior to this, he worked at Reebok and Timberland in his French homeland.

Meanwhile, American Tara McCrae returned to Clarks as chief marketing and digital officer after an 18 month stint at fitness and wellness brand TB12, also holding a decade of experience at sporting retailer Puma.

Founded in Street, Somerset back in 1825, Clarks first began making sheepskin rugs and slippers before transitioning into producing sheepskin-lined shoes.

Today it sells more than 50m pairs of shoes each year.

Throughout its history, the heritage British business has become synonymous with quality footwear, known for its comfort, durability, and stylish designs.

But there have been a range of changes along the way. Back in 2021, private equity firm LionRock Capital Partners acquired Clarks for £100m, and trading has been hit.

Since then, the retailer has undergone a period of transformation in its stores, products and marketing alongside a refreshed website as it dedicated more data and research into finding and targeting its customer groups.

To attract these new shoppers, Clarks has turned to innovative design and exclusive collaborations, all while maintaining its appeal to its loyal “timeless consumers”.

After recently celebrating its first-ever Wallabee Day on 26 April in honour of one of its famous shoe silhouette, Retail Gazette caught up with Matteau and McRae to discuss how exactly the retailer plans to put its best foot forward.

Trading during tough times

It’s no secret that the world of retail has been rocked in recent years with consumer trends changing faster than the weather and global events making life no easier.

Despite the current challenges, McRae is excited for what the future brings.

“Consumers are looking for quality, authenticity and comfort, with brands and products they can trust,” she says. “I don’t think that there’s another brand out there, that really checks all of those boxes.”

She points out that when shoppers are spending their hard earned cash, “they’re going to spend it on something that really excites them”.

McRae says that Clarks’ latest collaborations with Martine Rose and Kith founder Ronnie Feig have “really excited” consumers.

Motteau adds that the durability of Clarks’ shoes have helped the retailer remain an attractive option for a range of shoppers.

“You have a big chunk of the market that have been really used to sneakers, almost all their life and I can tell you, the life expectancy of a pair of sneakers is one and a half, two years max.

“But when you buy a pair of good quality leather shoes, you can hold onto them for much longer,” he explains.

“From a consumer standpoint, it’s quite rational to look and consider brands like Clarks because there are not many where you can truly get the most out of your money.”

In such a fiercely competitive market, McRae believes that Clarks’ positive brand perception has helped it to stand out.

“Shoppers return time and again due to a trust in quality and authenticity.” However, she adds: “It’s only going to be viewed in that way if we continue to deliver on that.”

“We’ve been working heavily on really strong and effective product marketing to educate the consumers.”

Changing shopping trends

With 2024 well underway, McRae says that much like last year, the in-store experience plays a pivotal role for Clarks.

She emphasises the importance of digital in-store “because everything starts there”.

Clarks Kingston

The retailer has been very focused lately on evolving its store experience and shop fit, says McRae.

Clarks opened its first immersive Modern Workshop concept at its Kingston store in December 2022, which featured a contemporary new look showcasing Clarks’ innovation and paid homage to its craftsmanship.

Shoppers can access in-store activations and events, as well as sustainable services such as repair and customisation.

McRae says the modern workshop concept is one the team will be “constantly evolving” as it “brings to life” the retailer’s brand story.

Since opening the new fit out, Clarks has expanded the concept over the last year, opening a Paris flagship and most recently its new Birmingham location. It is in the process of rolling out the modern workshop shop fit across its global portfolio.

It also launched new UK and US ecommerce sites last year as the business “pushes for an elevated journey”, explains McRae.

“We’re going to be continuing to enhance that, to ensure that our consumer can stay connected. However they want to shop, whether it’s social, ecommerce or in store, its vital that they get that full brand experience.”

Powerful collaborations

Clarks has released numerous notable collaborations in recent years, partnering with various designers and artists to create unique collections that keep everyone talking.

It has teamed up with the likes of Wu-Tang Clan, streetwear brand Supreme, singer Jorja Smith, and Jamaican DJ Popcaan. McRae says: “Its so refreshing that people are calling us wanting to do stuff with us.”

“We’re a very authentic brand, so we’ll only work with people that have a shared love for the brand, as we obviously do for our own.

“It’s not a ‘pay to play’. We bring in people that have a passion, a love and respect for the brand and partner with them.”

She calls the past couple of years “a wild ride”, teasing the team is “excited about what we have coming in the second half of 2024 and then, of course, for our 200 year anniversary”.

The popularity of some of its Wallabee collaborations have taken the internet by storm, with the silhouette becoming a hot trend for everyday consumers and influencer alike, despite Clarks introducing the model way back in the 1960s.

To celebrate the popular style, Clarks held its first-ever Wallabee Day this year which will take place every year on 26 April.

 

View this post on Instagram

 

A post shared by Clarks Originals (@clarksoriginals)

Throughout the month, the retailer will be celebrating through a series of activations, customisations and content releases.

“It’s such an iconic shoe loved by people across the world and has served as a blank canvas to artists, creators and cultures over many generations,” says McRae.

“Wallabee Day allows us to celebrate not just the shoe, but also all of the collaborators who help us reinvent the story, year after year.”

Balancing heritage with innovation

While being a heritage brand holds value, every retailer must innovate and adapt to the current times to ensure survival.

Motteau says that “Clarks has always been at the forefront of innovation”, pointing out a history rooted in innovation, exemplified by its creation and launch of the first-ever casual shoe, the Desert Boot, in 1950.

He explains that this tradition of innovation continues today with the introduction of new designs like the Torhill, which he says “has had very strong global success”.

The retailer launched the new boot model last February in a bid to target Gen Z consumers on TikTok

In recent years, the retailer has used emerging technology to capture consumers attention. Back in 2022 it entered the metaverse, tying up with online gaming platform Roblox. A year later, it returned to the metaverse for a virtual concert with Nigerian superstar Fireboy DML.

McRae says that “Clarks has really been pushing the boundaries with innovation and reinventing itself” as she teases some “exciting projects” coming out later this year.

Growth opportunities

Clarks unveiled a strategic plan late last year, which it is still rolling out, that centres on identifying its target customers and find marketing strategies to effectively engage with them.

Motteau points out that across the many markets that Clarks trades there was “so many different standpoints and visions about the brand”.

“We’re really excited about this year. It’ll be a struggle, another tough year. Anybody who’s not saying that I’d be shocked at.”

McRae teases that there are many things in the pipeline and that she’s hopeful the economy will turn as we head into 2025 and beyond, because “we’re primed to excel”.

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Seasalt plots more US stores as it ramps up expansion https://www.retailgazette.co.uk/blog/2024/12/seasalt-us-stores/ https://www.retailgazette.co.uk/blog/2024/12/seasalt-us-stores/#respond Fri, 27 Dec 2024 08:42:31 +0000 https://www.retailgazette.co.uk/?p=179112 Seasalt is set to open at least two more stores stateside next year as it ramps up its expansion plans for America.

The fashion retailer said its US store debut in Falmouth, Massachusetts, had outperformed expectations following its opening in September, with customers spending on average 140% more than in its UK stores, The Times reported.

The brand will open its second location in March at The Grove in Shrewsbury, New Jersey, followed by a shop at Market Square in Portsmouth, New Hampshire, in May.



Seasalt is also planning to open two more stores along America’s East Coast, with exact locations to be confirmed.

The retailer is expanding its wholesale footprint with department store chain Nordstrom, selling a curated selection of its collections and its full womenswear range from next year.

It told the publication: “US customers are reacting very positively to the brand, spending with us when they visit and requesting to hear more about the brand.”

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Best of 2024: From swoosh to stumble, can Nike regain its stride? https://www.retailgazette.co.uk/blog/2024/12/nike-regain-its-stride/ https://www.retailgazette.co.uk/blog/2024/12/nike-regain-its-stride/#respond Fri, 27 Dec 2024 08:02:59 +0000 https://www.retailgazette.co.uk/?p=160318 Since its inception 60 years ago, Nike has long dominated the sportswear market, fuelled by innovative products, global reach and out-of-the-box marketing.

But in recent years its chokehold on the industry seems to be slowing.

The American sportswear giant is in the midst of its worst slump in a decade. Earlier this year it unveiled plans to cut 1,600 roles as it looks to make £1.6bn in cost savings over the next three years on the back of softer sales.

When making the announcement to staff about job cuts, Nike chief executive John Donahoe – who replaced its much-lauded boss Mark Parker in 2022 – admitted: ”We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

The gravity of the situation was laid bare last week when Nike slashed its 2025 forecast after reporting weaker-than-expected fourth quarter sales. The news led to its shares plunging 20%, making it the biggest one-day percentage drop in its stock’s history.

The brand has faced increased competition from new players and old, and some have pointed to a lack of innovation as it has struggled to meet shifting consumer preferences.

As the Paris Olympics approaches and the world gets fully immersed into a summer of sports, Nike is determined to hark back to its innovative roots and affirm its position as the undisputed leader in sportswear.

But what has put Nike in this vulnerable position in the first place, and what steps does it need to take to return to peak performance?

Nike

Nike’s recent stumble

Compared to its historical dominance in the industry, Nike’s recent performance has shown signs of weakness as new players such as On, Hoka and Lululemon have gained traction.

Retail consultant and former Nike exec Peter Harewood tells Retail Gazette: “Nike has been going downhill for a while”.

Although he says this decline is “accelerating”, Harewood adds: “At least it’s recognised it’s got a problem and has put a plan in place to turn things around.”

But what factors have contributed to its declining performance in recent years?

Gone are the days of buying an Air Force 1 in every single colour.

Moses Rashid, founder and CEO of sneaker marketplace The Edit LDN lists a few reasons.

“The lack of innovation in new silhouettes, over-saturation of releases which has seen multiple releases weekly in a climate where discretionary spend is down. For me, the easier the sneaker is to get your hands on, the less desirable it is, meaning the hype goes.”

“We, as consumers, want to see something new and different. Gone are the days of buying an Air Force 1 in every single colour. We thrive off getting the limited release, the sneaker that not everybody has. In turn, this approach has seen the influence shift to up-and-coming brands, and shift consumer interest.”

Harewood agrees that the biggest contributing factor to Nike’s struggles is its lack of innovation across its product range.

He says that Nike’s reliance on its most popular shoe – the Air Force 1, which debuted over 35 years ago – is a clear example of this.

While its approach of capitalising on the designs that customers knew and loved worked during the pandemic, as the world reopened, consumers wanted newness and Nike’s lack of fresh offerings became apparent.

Harewood adds: “During Covid it let its creation team fall apart, and now what’s happening is brands like On and Hoka have kept building and developing and expanding their product ranges.”

“Now the kids are looking at this stuff that’s new, shiny and different and they are literally eating Nike’s lunch.”

Even some of its stockists agree that lack of innovation is hurting Nike. Back in March, JD Sports boss Régis Schultz admitted that the brand’s sluggish innovation was contributing to flat sales at his business.

“Nike has been so successful but they just stopped a little bit bringing in new stuff,” Schultz told Bloomberg. “At the same time Adidas is doing very well, New Balance is doing very well.”

The CEO went on to say that shoppers quickly “get bored”. “If you don’t bring in new stuff, new product, new innovation, new colour – I think the demand is suffering,” he added.

Major missteps

Aside from the lack of innovation, other strategic missteps have been made.

Back in 2017, Nike launched its Consumer Direct Offense, as it looked to expand its direct-to-consumer (DTC) business, and lower its reliance on wholesale accounts.

That included saying goodbye to many wholesale partners as well as ending its high-profile Amazon.

However, Rashid says this approach has hurt the business. “The decision to overstock with DTC only, has seen the market shift away from Nike. It used to have the right balance, but it changed its stance and has been impacted,” he says.

And it looks like Nike agrees – to some degree.

Earlier this year CEO Donahoe said: “While our consumer direct acceleration strategy has driven growth and direct connections with consumers, it’s been clear that we need to make some important adjustments.”

Last year, Nike revealed it would be reinvesting in wholesale partnerships, with old stockists and new ones, after it became clear that cutting ties with over 50% of its partners was too drastic a step.

From swoosh to stumble, can Nike regain its stride?

Although its DTC sales edged up 1% over the last year, in its last quarter they fell 10%.

GlobalData head of apparel research and analysis Chloe Collins explains that it’s about having “the right blend” of both DTC and wholesale.

“A lot of DTC brands at the moment are realising they they do need the exposure through wholesalers,” she adds.

Nike is clearly trying to make sure its working with the “right” wholesalers, to ensure that its image, the presentation of its products and brand is presented well, because otherwise it can damage their reputation, Collins says.

Meanwhile, Rashid highlights the problem of Nike saturating the market with certain lines. He uses its Dunk Panda shoe “as a prime example”.

Nike Panda Dunk

“At one point hitting market prices of £250+ in all sizes, it was desirable. However, Nike continued to restock and restock to a point where almost everyone in London appears to have one, which in turn has seen this pair available at retail price at almost every outlet.”

“Why is this important? It took this approach with multiple sneakers which at one point were desirable and creating multiple versions of it. Gone are the days where we used to stand in queue and post when we finally got ‘that’ pair.

“Over time, it’s worn us down and the desirability has gone.”

Rising rivals

The sportswear market has always been crowded, however an influx of newer brands have made it more competitive than ever. Brands across the spectrum have been gaining traction and stealing market share from Nike.

Brands like Adidas, On, New Balance, Hoka, and Lululemon are just a few names tapping into areas that Nike hasn’t prioritised in recent years.

For example, Hoka and On have developed popular performance-based running shoes, while Lululemon has become synonymous with fashionable yet functional athleisure.

Collins says that Nike has “got so much competition now”

“Not even just Lululemon, but you’ve got brands like Tala, Alo Yoga and Adanola, all fashionable athleisure brands that lauched off the back of Lululemon’s success.”

These brands have particularly resonated with women as Collins says their fashion credentials mean they can be worn day to day, unlike Nike, which she says is still seen as purely a brand for exercise rather than style.

She explains: “There’s been a real athleisure boom since the pandemic, which has born all these new brands that just hit the brief a lot more with females. I think females want more of that trend aspect.”

On the performance shoe side of things, Hoka and On have been growing rapidly. Harewood says: “Their shoes are seen as more innovative and appealing to younger consumers.”

Earlier this year, On unveiled blockbuster partnerships with American actress Zendaya and British singer FKA Twigs as it deepens it push into clothing, further solidifying their position as the most desired new players in the market.

On x Zendaya (supplied)And the numbers prove it. Hoka and On Running’s market share have more than tripled during the pandemic, according to the latest sports footwear research from GlobalData.

Hoka’s share jumped from 0.2% in 2019 to 0.7% in 2022, and On ‘s quadrupled from 0.3% to 1.2% – with Nike’s share falling from 23.4% to 22.1% over the same period.

With On and Hoka’s star rising rapidly over the past two years, more share is likely to have been gobbled up.

Harewood says that “Nike fell asleep at the wheel”  by failing to recognise shifting consumer preferences towards quality products.

He explains that in the past, consumers were wooed by the hype and flashy marketing that Nike is known for. However, the current consumer preferences for quality products plays into the hands of rivals like On, which is known for their innovative approach to sportswear and durable products that stand the test of time.

“Nike has always known its had a quality problem, but its always been able to live behind the hype and the glamour and the excitement. I’ve always said Nike is a marketing company that just happens to sell shoes,” says Harewood.

He adds that the business has also been “way too focused on the youth market” of 15 to 18 year olds, neglecting the important 20 to 30 age bracket, which he calls a major mistake because “they will be loyal customers for much longer”.

Meanwhile, some of the more established sportswear brands have become resurgent again.

Rashid says: “Adidas has leaned into the Samba through to Gucci Gazelles. It’s managed to become culturally relevant again.

Adidas Saka

“New Balance have tapped into cool collaborations with Joe Freshgoods and Aime Leon Dore, leaning on functional and clean styles, backed with great marketing using likes of Arsenal’s Bukayo Saka and Chicago Bulls’ Zach Levene.”

Rashid adds: “The big thing for me is Nike used to really drive culture, and it feels like they need a stronger cultural influence at the helm to support this.”

His comments follow a raft of senior creative leaders exiting Nike in recent years.

Chief design officer John Hoke, known for driving its innovation in design, departed in 2022, while Michael Spillane, president of consumer creation who was instrumental in product innovation and global brand strategy, announced his retirement last year after 16 years with the company.

Keeping up with the times

Rashid believes that Nike hasn’t kept up with consumer preferences when it comes to trainers, which over the past year has been towards more functional silhouettes.

Brands like New Balance, Hoka, and On Running have benefitted significantly, with their products going viral across social media.

In contrast, he says: “Nike hasn’t really tapped into this market with the coolness that we’re used to. There is still a need for consumers to want something different. Nike’s approach of regurgitating their styles has left us with fatigue.”

This, combined with the fact that shoppers are just spending less, has hit the sportswear giant.

Rashid says: “Historically, we used to buy multiple pairs of sneakers monthly. Now consumers are buying fewer items.”

Another way Nike hasn’t kept up with the increasingly hard times is with its prices, which have crept ever higher even amid the cost-of-living crisis.

On the back of its weak results last week, the business said it would launch a new $100 (£79) and under trainer line that will roll out globally to help drive growth.

Collins says that with many consumers struggling financially, “it’s important for Nike to have some more entry-level price points”.

However, she adds that having cheaper shoes may not be enough to convince shoppers to choose Nike over other trainer brands as “it still needs to have the best product as well”.

She stresses it also needs to focus on product differentiation and standing out from competitors like Adidas, Hoka, and other running specialists.

What next for Nike?

Harewood believes that Nike must refocus on innovation if it wants to regain its dominant position at the top of the market.

“They need to prioritise developing new, innovative products again,” he says.

Nike claims to be doing just that. Last week, Donahoe said: “We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike’s future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.”

The sportswear titan has kickstarted “a multi-year innovation cycle”.

Donahoe explained: “We’ve been accelerating our innovation pipeline, including pulling forward several innovations, some more than a year. We’re moving aggressively to re-establish our innovation edge.”

He said it began with performance lines, which he highlighted grew double digits in its last quarter.

Harewood adds that Nike should be broadening its target market beyond just youth and have a stronger focus on women’s products, to capture both these important targets.

Donahoe said that fitness represents one of its largest market share opportunities, particularly for its female consumer, and it plans to make “meaningful investments” in the area.

He highlighted that statement leggings, which he deemed “a key focus for us”, were up high double-digits in Q4, led by innovations it had introduced over the past few quarters.

Harewood is hopeful the brand can turn itself around. “With these strategic shifts, I believe they can rise in dominance if it manages to refocus on the areas that made it into the brand it is today – innovation, quality and appealing to all consumer groups,” he says.

With a clear innovation problem to deal with, Rashid adds that “sneakers is all about the culture and community and it feels like Nike has lost some of its identity”.

“I’m still a huge advocate but something feels like it’s lacking,” he says, emphasising that it “rooting for Nike to pull it back”.

Donahoe is determined to do just that – and is keen to use the summer of sport to show the world what Nike can do.

He said: “The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world. This is led by breakthrough innovation and announced by a brand campaign that you won’t be able to miss.

“We can’t wait to bring all this Olympics product to life across the Games and in more than 8,000 doors worldwide. This summer we will cut through the clutter to create powerful energy for the Nike brand. We’re back doing what we do best: creating impactful storytelling and ultimately,
brand distinction in sport.

“In the end, we’re taking our challenges head-on, and we’re regaining our edge.”

That is quite the call to action. The stage is set for Nike to recapture the hearts and minds of consumers during this summer of sport.

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In pictures: The 12 best store openings of 2024 https://www.retailgazette.co.uk/blog/2024/12/best-stores-2024/ https://www.retailgazette.co.uk/blog/2024/12/best-stores-2024/#respond Tue, 24 Dec 2024 09:00:42 +0000 https://www.retailgazette.co.uk/?p=178642 2024 saw a surge in retailers investing in stores as they continue to defy ‘death of the high street’ talk.

Retail Gazette rounds up the best new store openings of the year that have created a real buzz on the high street.

M&S, Battersea in London

At the start of the month, M&S opened the doors to its first clothing-only store inside London’s Battersea Power Station.

The 8,400sq ft shop stocks the retailer’s womenswear and menswear ranges, including dedicated areas for Jaeger, Autograph and Rosie. It also offers a small beauty range, as well as click and collect services.

M&S said: “Shoppers looking for style advice will be assisted by the 35-strong team of customer experience visual stylists who are on hand to provide help with fittings and outfit building.

“And for those who shop online, new click-and-collect points will be available for any online clothing, home and beauty orders.”

The store forms part of the M&S’ £30m investment in its London stores this financial year. The investment includes two new food halls and refurbishing 12 existing stores across the capital, including Blackheath, Chancery Lane, Islington and Teddington.


H&M, Westfield Stratford

H&M reopened the doors to its Westfield Stratford store in November, showcasing a brand new “innovative” technology-centric concept.

The Scandi fashion giant created an elevated shopping experience in the revamped space, which offers a curated selection of its fashion, beauty, and home collections.

Customers can access new smart store services, including interactive fitting rooms, where screens recognise products and provide tailored styling tips based on each individual garment.

Shoppers can also easily request a different colour and size as well as recommended garments directly to the fitting room or order on the H&M website.

New technology also offers mobile checkouts for a seamless shopping experience anywhere on the shop floor, alongside self-service checkouts.

H&M head of expansion for UK and Ireland Klas Degeryd said: “The newly designed store truly reflects our investment and commitment to providing the best of our brand for our London customers.

“Every aspect of the space is crafted with the customer in mind, celebrating the joy of shopping through exceptional design and interactive features. London is a global hub of fashion and creativity, so we are proud to expand and evolve our presence here.”


Sephora, Birmingham

Last month Sephora unveiled its latest store in Birmingham as the beauty giant ramps up its expansion plans for the UK, targeting 20 stores across the nation.

More than 2,000 people queued in Birmingham’s Bullring & Grand Central for the opening of its latest beauty store, which is the French retailer’s sixth in the UK and features the biggest Sephora window facade in Europe at 26 metres.

Customers can shop from a selection of brands across makeup, travel, fragrance, skincare, haircare, grooming and wellness, including exclusive to Sephora UK brands such as Mario, GXVE by Gwen Stefani, Haus Labs by Lady Gaga and Topicals.

Sephora UK managing director Sarah Boyd said: “We’ve once again harnessed the power of listening to our customers to shape our expansion plans around the UK, and the appetite that our beauty community in Birmingham had was profoundly powerful.”


Sainsbury’s Cobham

Sainsbury's completes transformation of flagship Cobham Superstore | Sainsbury's

In October, Sainsbury’s completed a major upgrade to its Cobham superstore in Surrey, which now acts as a ‘labs’ for its test and learn approach.

While not every new or revamped store will be an exact copy, the site has been providing the supermarket with real insight on over 100 ‘experiments’ that have been trialled into what could be rolled out more widely in the future.

More space in the Cobham store has been given to the grocer’s food ranges, with a “quite different” look to a traditional Sainsbury’s supermarket.

New concepts like the ‘fish counter on a wall’ have been introduced, with all the species of fish you would expect to buy at a counter, stored in the same aisle as other fish products, as well as dedicated ‘Free From’ areas and specialty end of aisle displays, such as a speciality cheese section alongside wine pairings.

With the retail sector having experienced unprecedented levels of crime over the past year, the new store layout also pays attention to where higher ticket items, such as beer, wines and spirits, are housed.

At Cobham, these products are presented in a wide, open space in the centre of the store, which is more open, bright and with more staff able to have they eyes on the area, which in turn is driving an uplift in sales and reduced shrinkage.

This section also includes smart shelves, where if someone takes multiple bottles of spirits off at the same time, the shelf will send an alarm out to alert colleagues – a precaution that has been used for quite some time.


Harvey Norman, Merry Hill

Australian lifestyle, home and tech retailer Harvey Norman opened its first English store in October at the Merry Hill shopping centre in the West Midlands.

The 57,000 sq ft flagship houses a range of luxury furniture, including sofas, dining sets, bedroom suites and mattresses, alongside an assortment of smaller items including kitchenware.

The space also features home appliances, technology, and entertainment items from brands such as Dyson, Shark, Apple, Samsung, LG, Miele and Sage, with dedicated areas for each product category, including a cooking appliance centre that has been specifically designed for Merry Hill.

Harvey Norman UK MD Lachlan Roach said: “With over 300 stores in eight countries across the globe, it will be no surprise that we have been wanting to make our entrance to the English market for a while.

“The opportunity we had to open in a key national destination like Merry Hill was not one to miss, and it makes for the perfect home for our flagship location.”


Represent, Manchester

Streetwear brand Represent opened the doors to its first UK store in its hometown of Manchester in October, following a period of mass growth.

The 5,419 sq ft unit on New Cathedral Street in Manchester City Centre is the first permanent standalone retail space for the brand in the UK after opening a bespoke boutique store in West Hollywood, Los Angeles earlier this year.

An entire floor of the store is dedicated to Represent’s performance wear division, 247 by Represent, which the company said is “now the fastest growing arm of the brand”.

Founded in Manchester in 2011 by brothers George and Michael Heaton, Represent sales have grown at an average of 81.4% over the past 3 years. Until this year, the streetwear brand had been an online business selling via its website, however, it did sell through Selfridges, Harrods, and End Clothing.

George Heaton said: “The Represent Manchester location marks an important and iconic milestone for the brand; having spent the past three years planning physical retail footprints, trialling the senses of energy, look, feel, and scent through our partners such as Selfridges and Harrods along the process.”


Uniqlo, Kings Cross

Uniqlo opened its new Coal Drops Yard flagship in September, featuring interactive elements for all the family to enjoy.

Located inside a grade II listed Victorian coal drops shed, the space was redesigned by British interior design and architecture studio Heatherwick Studio to highlight the space’s industrial Victorian heritage, including exposed brick walls and wooden beams.

The 9,000 sq ft store houses the retailer’s Uniqlo Studio on the second floor, where shoppers can recycle, repair or remake garments so they can keep wearing them for longer.

The Coal Drops Yard location is also the first in the UK to trial the retailer’s mobile repair and customisation stations that can be wheeled around the store and its adjoining outdoor terrace, which also houses a custom-made ping pong tables for the public to use.

The Japanese retailer tapped British artist Pref to create an art mural within the store, which takes inspiration from the retailer’s Made For All philosophy in his classic typography style.


Frasers, Meadowhall

The same month saw Frasers Group open to its latest Frasers flagship as it continues to phase out its House of Fraser brand.

The 100,000 sq ft “next-generation” department store cover two floors, housing men’s and womenswear, kids, beauty, footwear and homeware.

The ground floor space stocks brands including Ganni, Rains, Nobody’s Child, as well as shoes and accessories labels Ugg, Longchamp and Coach.

Frasers Meadowhall features a smaller beauty hall taking into account the Flannels store located nearby and the group’s first food-to-go partner, Pret-a-Manger, which is located by the entrance.

The first floor of the flagship features Sports Direct’s newly launched outdoor concept, as well as it’s running section, which includes a running gait analysis machine to help consumers find the right product for their running journey.

Sports Direct Meadowhall will also offer the new Nike Football department, the second time this concept has been launched within the retailer, the first being at its London flagship.


Waitrose John Barnes, Finchley Road

Waitrose opened the doors its newly refurbished John Barnes supermarket in North London in August as part of a £1bn investment into revamping its store estate.

The premium grocer expanded its fresh produce department, upgraded its meat, fish and cheese service counters to include a dedicated parmesan section and a second dry aged beef cabinet, and installed its first-ever chilled wine department.

The grocer also spotlighted its growing number of third-party partners within the store, with a Gail’s freshly baked display, cabinets stocked with its exclusive Crosstown doughnuts tie-up, and a Caffè Nero coffee stand.

Waitrose John Barnes also features a new upgraded service desk that was moved to the back of the store, and the first-ever delivery hatch to help the supermarket facilitate on-demand grocery outside of its store opening hours.

The supermarket’s executive director James Bailey said: “The transformation of our Finchley Road store marks the next evolution of our journey to create a great shopping experience for our customers, underpinned by a high-quality product offering tailored to the local area, and the quality service we are synonymous with.”


Gymshark, Westfield Stratford

Gymshark unveiled its highly-anticipated second UK store in the summer following the success of its flagship on London’s Regent Street.

The activewear giant moved into a 7,000 sq ft unit in Westfield Stratford City, which will house specific events in the space – from athlete meet and greets to activations.

All the mannequins used in store have been modelled on 3D renderings of real-life Gymshark consumers with varying body types.

Founder and CEO Ben Francis said: “It’s a slightly different shopping experience to Regent Street. This is a smaller, more shopping focused and more product focused space.”


Nike Rise, Leeds

Nike opened its third UK ‘Nike Rise’ concept store earlier this year at the former Victoria’s Secret site in Trinity Leeds shopping centre.

The flagship, measuring 10,000 sq ft, uses innovative digital experiences and services aimed to “enliven the sporting pulse of the city”.

The store also features a digitally powered “Footwear Fastlane” where footwear product information and stories will be shared with shoppers, as well as the brand’s personalisation service “Nike by You”.

Trinity Leeds centre director Steven Foster said: “It’s incredibly exciting to welcome Nike Rise to Trinity Leeds, offering a first-of-its-kind retail concept with a unique digital experience to help people connect with sport in Leeds, and the local sporting community.

“The launch of Nike Rise – the brand’s only concept store in the region – comes during a particularly exciting time for Trinity Leeds, as we gear up to welcome more big-name brands in the coming months.”


Sports Direct, Cardiff

Sports Direct kicked off the year by opening the doors to its fourth flagship in Cardiff.

The 60,000sq ft store was the first to debut the retailer’s new outdoor concept, which includes a terrain tester, weighted bags, a lacing and packing guide.

Spread over three floors, Sports Direct Cardiff also houses several specialist sporting areas for football, rugby and running, as well as dedicated areas for Game, USC and Evans Cycles.

Frasers Group managing director of Sport Ger Wright said: “As we continue to elevate our unique proposition, the opening of our new Cardiff flagship store marks the launch of our eagerly anticipated new outdoor category concept as it continues to be a growing area of interest for our consumers.

“As the appetite for outdoor adventurers increases, we want to provide our consumers with an unrivalled retail experience through trail running, trekking, hiking and beyond.

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