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Walking the tightrope between wholesale and retail

Navigating the choppy waters of attempting to keep wholesale stockists happy while expanding your retail portfolio can prove a tricky task for some.

Brands must ensure that when opening their own retail stores they do not cannibalise sales and leave the stockists, which have helped build them up, with fewer pennies in their tills.

Dutch young fashion brand Scotch & Soda is attempting to do just this and has gone about it in a considered manner, communicating with its UK distributors to find out which locations would benefit most from a store in the area.

The label is only seeking out sites in key cities around the UK, keen not to over saturate the market. Its distributor, Zone Two, has been involved very closely with Scotch & Soda, helping to develop a clear retail and wholesale distribution strategy, which is harmonious for both the brand and its wholesale customers.

Stockists must also be kept in the loop for all advancements in this retail strategy as some retailers may fear their sales will suffer as a result of the brand opening stores.

Whilst this is understandable, flagship stores can also help build a brand’s UK image, particularly for international labels lacking a strong presence in this market. A peppering of shops across the country could help boost sales at retailers as kudos grows and consumers actively seek out the label.

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