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Headline

Fashion is key battleground for supermarkets

Comment

Fashion offers much, much higher margins than traditional grocery products. Cash margin is also good per item. Supermarkets have commoditised many categories to date. I believe they will do so in fashion, especially for childrenswear and basic essentials. Enormous weekly footfall in store and massive email databases of customers to target are catalysts. Traditional fashion retailers (inc department stores) and brands need to up their games to compete. Quickly (though I'm not seeing it). In my opinion, there is simply not enough effort behind understanding the customer or giving great service in store. Along with the likes of Amazon and eBay, the supermarkets will use their scale to great effect. They already use their customer sales data in other categories to improve ranges and optimise sales. I'm sure they are doing so in fashion. Signs are clear they are already looking beyond value ranges.

Posted date

5 September 2014

Posted time

10:41 am

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