FASHION INDEX
Dan Coen
Director, corporate advisory
firm Zolfo Cooper
T
esco last week unveiled its ambition to
be the world’s leading retailer for
affordable fashion. The supermarket giant
is hoping its F&F range, which is sold in
450 UK Tesco stores and 16 countries
worldwide, can compete with the likes of H&M, Primark
and George at Asda by bolstering the brand’s presence
in store and attracting new online customers at the
same time.
Tesco’s decision to grow F&F in this way is just
another example of its ability to attract new customers
and encourage loyalty by diversifying its business
model in a clever way. We’ve seen this already with its
acquisition of restaurant chain Giraffe back in March
and the Harris + Hoole coffee shops last year.
There are obvious strategic benefits to this approach.
Tesco is clearly hoping the addition of family-friendly
offerings like these will not only help to draw in the
crowds, but also keep them there.
By diversifying in this way, the retailer is tackling
its biggest challenge head on, because it will still need
to change the public’s perception of Tesco solely as
a supermarket brand – especially when it comes
to fashion.
Tesco is already making great strides in this regard,
having just opened its first dedicated F&F womenswear
shop-in-shop in its West Kensington store this week.
It seems the gamble has paid off, since the new store has
real high street appeal, but with branding and imagery
that feel upmarket.
Building a fashion empire in this way makes good
business sense, as this measured approach to
diversification can deliver a number of very important
benefits for the company. After all, whether it is opening
coffee shops, restaurants or clothing outlets, this
strategy will enable Tesco to extract value from its
property portfolio, boost customer engagement and
establish itself as part of the fabric of consumers’
everyday lives.
Of course, there is bound to be a certain surprise
factor, and perhaps some snobbery, as Tesco tries to
transform F&F into a competitive fashion label, but
that’s no bad thing.
By staying this course and continuing to offer the
products consumers want, at a price they can afford,
Tesco will be able to build its reputation as a brand
that Britons can trust – for their cardigans as well as
their carrots.
12
Drapers / NOVEMBER 2 2013
WEEKLY FOOTFALL RETAIL INDEX
National UK footfall figures
Week 43 – October 21 to 27, 2013
-4.8%
-5.6%
YEAR-ON-YEAR CHANGE
WEEK-ON-WEEK CHANGE
More unsettled weather is likely to have had an impact on the Experian Footfall
National Retail Index. From Friday, severe weather warnings were being issued
across the country for storms on Sunday night. Subsequently, we saw a 5.2%
increase in visitors on Sunday, perhaps in preparation for this. Northern Ireland
was the only region to benefit from a year-on-year increase. All other regions
experienced a decline with the West Midlands showing the greatest, down 11.8%.
HIGH STREET SALES TRACKER
Like-for-like sales figures across the high street
Week ending October 27, 2013
-6.7%
-7.35%
Total fashion
Clothing
-12.1%
Footwear
Trade was negatively impacted in many parts of the country by the later timing
of half-term holidays, with fashion and home-related stores badly hit. Fashion’s
woes continued with sales down for the fifth time out of the last six weeks.
For more information, email BDO’s Don Williams at [email protected]
DRAPERSJOBS.COM
The UK’s employment hot spot
and the most popular roles
The most applied
for jobs
1. Design 8.1%
2. Production 6.3%
DUBLIN 205%
Highest growth location (defined by % increase
in traffic to DrapersJobs week on week)
3. Merchandising 6.1%
4. Sales 5.9%
5. Buying 4.4%
ILLUSTRATIONS BY NATHALIE LEES
‘Push into fashion
will broaden
Tesco’s appeal’