RETAIL CLOTHING SECTOR IN THE UNITED KINGDOM

Retail Clothing Sector In The United Kingdom



Retail Clothing Sector in the United Kingdom

Introduction

A retail channel refers to a set of interdependent organizations involved in the process of making a product or service available for use or consumption (Kotler, 2003). Price, product, market served, or means of access to consumer identify retail channels. Understanding the channel classifications of the retail industry is important prior to discussing the issues facing the industry with regard to price; however, a review of academic and trade literature yields inconclusive evidence to support the classification of retails channels. This result may extend from the inherent nature of the retail industry, whereby, the industry has evolved and traditional retail settings are no longer the norm and that there is potentially an overlap in channel classification due to price and potentially a lack of differentiation. Retail channels discussed in this paper include discount mass merchant, national chain, department, and specialty

Background

Retailers and manufacturers exist in a competitive environment of intense competition for consumers and products (Kotler, 1974). For large retailers, apparel products typically flow directly from manufacturer, to retailer, to consumer (Lea-Greenwood, G. (pp.21-31). As specialty chains gained prominence in the late 1980s and early 1990s, and store brand development increased, the role of the manufacturer as a prominent player in the apparel supply chain declined. In traditional economic theory, price determination establishes the retailer as the “price taker” rather than the “price maker” with the understanding influence exists within determining the quantity to produce (Lea-Greenwood, G.1998, pp.22)

Retail pricing strategy

Pricing is a dimension that can be identified from the perspective of the customer as well as that of the retailer/manufacturer (Lea-Greenwood, G.1998, pp.21-31)

Pricing is part of an overall integrated firm planning process consisting of interrelated variables including product quality an assortment, location, adverting, sales, personnel, credit and customer service. Several authors comment on considerations, determinants and dimensions of pricing strategies. market factors - market and city characteristics (metropolitan, small city);

chain factors - chain size, positioning, in regards to corporate mission and polices;

store factors - store size, category assortment;

category factors - size assortment, storability, extent of necessity;

brand factors - brand equity or preference, relative brand advertising, relative trade deals; and

Mostly in Womenswear retailers are now faced with managing rising costs against a worsening economic backdrop. Womenswear evolves from a low price, low cost, high volume model to higher price, more exclusive product and lower volumes. A market saturated with space and choice translates into fewer operators and a shakeout of weaker players. Costs continuing to rise have the same effect of shaking out weaker operators. This report profiles the 10 largest operators by market share, assessing how they are adapting their propositions in response to changing consumer needs. It includes analysis of individual brands in the Arcadia and Mosaic Groups and data on All Saints, Cult Clothing and Fat Face. The report also covers key operating statistics, distribution channels and market segment ...