New Look is set to open three standalone menswear stores in Portsmouth, Wigan and Trafford Centre in Manchester. Dhiresh Bhardwa, managing consultant of location strategy at retail analyst CACI, weighs up the merit of these locations for the young fashion retailer.
The location that stands out from the trio is Trafford Centre, where premium retailers account for half the retail offer, compared to just 6% for both Portsmouth and Wigan.
Considering the premium offer it is unsurprising that the Trafford Centre has an over-representation of some of the most affluent Acorn consumer groups, including ‘Lavish Lifestyles’ and ‘Mature Money’. However, all three locations share a higher than average representation of the less affluent groups ‘Young Hardship’ and ‘Difficult Circumstances’ in their catchments, as well as ‘Steady Neighbourhoods’, who are most representative of ‘Middle Class’ families.
Portsmouth and Wigan both have a relatively modest shopper population of 75,000 and 100,000 respectively when compared to the Trafford Centre, which has over half a million shoppers in its catchment. Whilst tourism accounts for £33m per annum at the Trafford Centre, Portsmouth is well positioned to capture a greater proportion of shopper spend from tourism, which accounts for 12.6% of expenditure, compared to around 2-3% in the Trafford Centre and Wigan.
The average weekly spend per person on menswear is broadly similar for all three locations, at an average of £2.54, which is higher than the national average of £2.15.
CACI have statistically analysed similar retail centres to the three new locations based on the population, market quality and Acorn shopper profiles. Assuming the locations are representative of New Look’s menswear location strategy the following centres would be viable locations for further new stores:
- Bluewater (Kent)
However, given the contrasting nature of the new store locations it is possible New Look may have chosen these different types of retail centres to help determine where the new format may be most successful in order to inform their expansion strategy.