Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

EXCLUSIVE Brands blast ‘crazy’ Dorothy Perkins Sale

Discounts kicking off this week mean brands stocked in the chain’s concessions will face reduced margins.

Brands with concessions in Dorothy Perkins have warned they may pull out of the womenswear chain after it went on mid-season Sale this week, leading to slashed margins.

The Arcadia-owned retailer launched its Sale on Thursday (September 13), ahead of some current stock even landing in stores.

A manager at one women’s young fashion brand, which is stocked in a Dorothy Perkins concession, said: “It’s crazy – mid-season Sales are normally in October. It’s indicative of the times that stores such as Dorothy Perkins are having to go on Sale to drive footfall.”

Concessionaires have been asked to discount clothing by 40%, resulting in a potentially significant reduction in payment to suppliers.

“It will hit our bottom line,” added the manager. “I certainly won’t be expanding [in Dorothy Perkins] but I will perhaps look at consolidating the portfolio.”

The managing director of another brand said the move would make him consider pulling out of the retailer.

“All they do is markdown, markdown, markdown,” he said. His autumn 12 stock has not yet entered stores – a far cry from the normal seven-week period for standard pricing.

“Sale periods are way too early,” added a third brand owner. “In some cases the discounts you are forced to give are a very high level, almost half, and then that leaves you with virtually no margin.”

It is understood that other retailers including Oasis will follow suit and launch Sales on September 25.

Honor Westnedge, senior analyst at Verdict Research, said earlier mid-season Sales could be widespread this year.

“Retailers are just trying to shift stock. Footfall levels are down and consumers are increasingly reluctant to buy.”

But multiples aggressively discounting so early in the season could pave the way for more brands to set up standalone stores in order to retain margins.

“If you supply to 100 boutiques and then start selling in a chain store where they slash the prices, the boutiques can’t compete and you end up losing them,” one brand told Drapers.

Westnedge said Dorothy Perkins’ aggressive discounting would not damage the brand image but would leave consumers unwilling to buy at full price.

“It’s a vicious circle, which will be very difficult for them to break out of. It’s a risky strategy to have.”

Dorothy Perkins declined to comment.

Readers' comments (6)

  • When are these stores going to learn? Keep discounting and the buying public will never pay full price so margins are being cut ever smaller and the whole thing rollercoasts into reverse.

    Unsuitable or offensive? Report this comment

  • www.Anthony&Brown.co.uk

    There should be a unwritten rule where if stores discount out of set times of the year all brand owners refuse to stock them the following season. This would stop them from devaluing all the brands they sell by offering constant discounts.
    Whats the point in having a RRP if they act this way?

    Unsuitable or offensive? Report this comment

  • darren hoggett

    Totally agree with the previous two posts, especially the last one. That would really challenge the retailer to get it's act together. Unfortunately, there are too many shops discounting unnecessarily which is not only ruining things for themselves but also for everybody else.

    Discounting has never been the answer and never will be. Anyone can give it away.

    Darren Hoggett
    J&B Menswear Limited/Norwich

    Unsuitable or offensive? Report this comment

  • "The managing director of another brand said the move would make him consider pulling out of the retailer.

    “All they do is markdown, markdown, markdown,” he said. His autumn 12 stock has not yet entered stores – a far cry from the normal seven-week period for standard pricing."

    Not that I agree with D.P at all, but what retailer doesn;t yet have ANY of their AW 12 stock in stores?!

    Unsuitable or offensive? Report this comment

  • So, could I just ask- The brands stocked have no power whatsoever to influence these sort of decisions? Do DP and all other stores with concessions just do whatever they want without warning/asking the brands?! Is that how it works?

    Student,
    Dorset

    Unsuitable or offensive? Report this comment

  • To Student in Dorset...yup, they run their stores how they like and suppliers have to put up/shut up or ship out. There aren't enough independent stockists in the UK any longer to support a largish sized label so being stocked by chains is almost essential to keep up manufacturing numbers and to reach enough customers........how many indeoendent clothes stores are there in your local town in relation to number of chain stores? How many independent stores (creative ones ) are there in a typical shopping centre?

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.