They say the Chinese only buy the cheapest or the best. It’s simplistic, but it is the direction all retail markets seem to be headed in. The British market has been evolving into this for a while, now, and those stuck or stranded in the middle are suffering or dying.
The middle has been squeezed or forced to choose their direction of travel as we all race to the bottom or top.
The cheapest often requires huge volumes and multinationals and the best requires a perception of quality, luxury and good service.
As a brand or retailer, you have two questions to ask yourself, today: are we the cheapest? This can be split into different categories depending on where the brand sits and, are we the best? This is more complex and can mean many different things and is subjective. If you can’t say yes to both or either, they you need to start making some serious changes.
Imagine a Venn diagram: two circles, one the cheapest, one the best and price running up and the down the side axis. Any brand coming into the area where the two circles overlap is in a safer and strong position. Those within one of the circles has a focus, while those floating somewhere out of either need to work out which one they want to be in, and fast.
Let’s look at the cheapest option. This is why Sainsbury’s is getting into bed with Asda. The larger scale promises savings of around 10% to the consumer, and will help them compete with Booker/Tesco and the German food retailers, Aldi and Lidl. It’s an example of mid-market retailers needing to pair up or die.
In fashion, New Look revenue to the year 24th March 2018 was down -7.3% to £1,347.8m. New Look has not only announced store closures, but it’s also just said in its recent financial report and turnaround plan, that ‘Pricing (will be) lowered to offer significantly better value with 80% of product to retail under £20’.
Eighty percent of product under £20 will really put the brand toe-to-toe with Primark and, I think, it’s the right move for them. You have to go down fighting, but they’ll going to have to shift more product at these cheaper prices. Before, New Look wasn’t the cheapest, and it wasn’t the best in terms of being the most fashionable or desirable fast-fashion retailer. It used to be one of the cheapest, but then Primark came along.
It tried to be more fashionable, but at a time Boohoo, ASOS were growing and offering high fashionability at ridiculously low prices.
New Look says it wants to 'return to (a) value-led fast fashion and wardrobe basics offer with full price focus’. The margins will be so small they’ll need all the full price they can get.
H&M, long one of the darlings of fast retail, has seen its shares down nearly 20% this year and the company has said it will need to slash prices to reduce inventories, damaging profit margins. It has an $4.3 Billion in unsold stock and needs to be careful that its size won’t be its downfall.
It also explains its focus on different, ‘best’ sister brands like Arket and COS. H&M isn’t in the same position as New Look, yet, but they need to make sure it’s still seen as one of the best in terms of affordable fashionability and also offering value.
Marks & Spencer is another one trying this new best and cheapest approach. The clothes have arguably got much cheaper and the food is still perceived as the best, but it’s this balance that is hard to achieve within the same brand, especially knowing what consumers come to you for.
House of Fraser’s recent announcement to close 31 stores is a reflection of the growth of John Lewis both offline and online. John Lewis has continued to open in towns, in or near those House of Frasers, and House of Fraser isn’t cheaper or better. It probably explains the closure of the huge Birmingham store as John Lewis opened a shiny new shop at the railway station just a couple of years ago.
House of Fraser will need to pair up with somebody (maybe Debenhams?) or disappear altogether. Sports Direct, Mike Ashley, has shares in both and will no doubt be pushing for it and then they really can compete on price and dominate their local markets.
So, who is getting it right? Zara, for the best in fashionability and speed and John Lewis in customer service and being ‘Never Knowingly Undersold’. But, like a game of musical chairs, it’s changing all the time.
As for the ‘best’, this is what many luxury brands rely upon. This could be quality, use of materials, origin etc. Many ‘luxury’ brands have lost control of these in the race for large quantities and bigger margins. They have to be careful because a few poorly made, overpriced products will ruin the perception of any brand.
But, you can also find the cheapest within this market. For example, Johnstons of Elgin, one of the best Scottish producers of scarves and blankets. It makes for everybody from Hermès to Burberry. While a scarf from them is not cheap, say £100, it’s far cheaper than one with a designer name on. They are also the best at what they do and the reason why these brands use them.
Or, a brand like Paul Smith. When looking at a multi brand website like Mr Porter, it feels like one of the most affordable brands on there. I think its recent troubles has seen it get more competitive and tread that fine line between affordable and exclusivity. They are also the best at colour.
Or, you could can look at the total top, at the most expensive and exclusive. This is the pinnacle of the market and to be true to both would only be made in very limited numbers. This is chasing a very small number of big-fish consumers and, as such, it limits the size of the business. But, this can also to used to sell ranges of cheaper products, such as perfume or sunglasses, but even these categories are harder, now that people aren’t so hung up on brands.
This simplistic approach to the market cuts through some of the wood to see the trees in a highly competitive and changing retail landscape. So, the next time you look at your own brand or somebody else’s, you know which two questions to ask.
Shopping centres are morphing to survive. Opening cinemas, restaurants and other attractions to get people out of the house and their tenants happy with more footfall, they are trying to move away from being a one trick shopping pony. This is old news.
But, it’s all so chainy and sanitised; the antithesis of what is cool today. It’s basic.
Left - St George’s Market - Belfast
What’s cool today is start-ups, seasonal produce, artisans, craftspeople, farmer’s markets, Boxparks, ethnic food and passionate and motivated people seeing the whites of their customer’s eyes.
Shopping centres need to harness this energy and support it.
I’ve often been jealous of the historical, covered markets they have in many Northern towns. This isn’t poncey, Daylesford Organic type markets, but real markets for everybody, offering quality and affordability. Lots of fresh produce and home made products. I know, if I had one closer, I would use it.
I visited Belfast 18 months ago and fell upon St George’s Market. It was a mid-week wednesday in October and the whole place was buzzing. Built between 1890 and 1896, and supported by The National Lottery, the restoration preserved its Victorian heritage, from the authentic stone bricks to its Bangor Blue roof slates and replicas of original Victorian shops.
As well as restoring an important historical building, the project created a modern market place providing a space to trade and grow for over 170 small local businesses, and supports around 400 jobs each week.
Since its renovation in 1999, St George’s Market has gone from strength to strength, trebling the number of days it trades from one day a week to three. The huge variety and quality of products on offer helps to attract over 600,000 visitors each year. St George’s Market was named the UK's Best Large Indoor Market 2014 by the National Association of British Market Authorities.
There were signs on the doors saying there was a wait-list for stalls. It was a mix of food, arts and crafts, vintage artefacts and unique gifts. Of course, not everything was to the highest taste, but that’s the point of a market, it’s an excitement of discovery and unpredictablity. The opposite of a modern and bland shopping centre. It was thriving and it had an energy that I wanted to spend time in.
I recently visited Centre:MK in Milton Keynes. It’s a busy, 1970s listed shopping centre at the heart of the city. I had a walk around and noticed, huddled under a flyover type structure, was an outside market: little stalls selling vegetables and other types of street market products.
Shopping centres need to bring this inside, polish it up a bit and expand it. But not sanitise it. These types of markets were often looked down upon, much like Primark was - Read more here - but things change and we need a return to a type of frequent shopping that we’ve been doing for thousands of years.
Right - Kirkgate Market - Leeds
This is the modern version of an ancient market. Somewhere I can get great bread, home-made chocolates for presents and authentic products from all the nationalities who have made their home in the UK.
I live in Croydon. They opened a Boxpark over a year ago. It’s fantastic. It’s a large food court which feels like you’re trying something new and getting passion in every mouthful. It’s just food and you congregate on large communal tables in the centre after visiting what feels like an unlimited choice of cuisines.
People are just as tired of chain restaurants as they are of chain stores. It’s time for independents. These shopping centres could support whole armies of people itching to start their own enterprise. There are so many people wanting to follow their dreams and try something new without the prohibitive cost of opening a shop or starting a website. These brands are very active on social media and offer newness and a point of difference.
Large towns and highly populated areas could easily sustain a thriving market type concept. The shopping centre needs to be an umbrella rather than a controller. The other shops would benefit from more frequent visitors and the buzz of the shopping centre. This is also how future brands will start.
Remember Marks & Spencer started on a market stall in Leeds after all.
French beauty company, L’Occitane, opened their huge - the largest in the world - new flagship store on London’s Regent Street last night. This isn’t just another standard branch, it’s spacious, has a luxurious yet homely finish and even has a Pierre Hermé macaroon counter to boot. It feels like a cross between an airport lounge and a store. It’s definitely somewhere you could happily spend time in.
Left - Upstairs at L'Occitane Regent Street February 2018
Anyway, chatting away, somebody mentioned their boyfriend had come into the store previously and was looking for hand cream. The sales assistant said it was upstairs. As he went upstairs another sales assistant came over and said, “You’re looking for hand cream?”.
Mind reading is a skill that modern retail needs. Clearly, the sales assistant, downstairs, had radioed ahead. Not only is this great service, it’s also a form of human cookies - the chain of information your internet journey/history leaves behind allowing brands to track your movements and also recommend appropriate stuff.
It’s not magic, it’s just clever data, and I, for one, don’t mind having things recommended for me or being reminded I looked at something previously. You can clear your history every now and again if it becomes annoying.
What this shows is a linked up journey in a physical store. The customer is looking for something and rather being lost somewhere on the journey or not finding what they want, the sales links became strong and would obviously have more conversion in sales with the added bonus of wowing the customer and making them feel they had received great service.
Right - The flower filled ceiling installation from above inside the new L'Occitane Regent Street store
This is what physical stores need in order to compete with online: sales assistants quickly talking to each other, directing the consumer and having that want to please and fulfil expectation.
I understand many stores are too busy, some of the time, for this type of individual attention, but many luxury brands can offer this type of service if the sale assistants are motivated. It’s about a personal, human touch, which in the future we will miss from online shopping and something that can become a physical store USP.
‘Human Cookies’, as a concept, would definitely put new meaning into a physical store’s customer journey.
Oxford Street is the main artery linking west and central London. Everything goes through it: either sucked or pushed out the other side. You can spend hours on the bus thinking you’re on a magical mystery tour rather than a straight road bookended by two Primarks.
Well, “radical” plans are afoot, there are plans to pedestrian Oxford Street from December 2018. Admittedly, only half of it, at first, but this is going to be the retail equivalent of the smoking ban. You think it’s never going to happen, then, all of a sudden, it’s happening and everybody is on board and it’s the best thing that ever happened. The End!
Left - The "Posh" end gets the first pedestrianisation treatment in December 2018
No doubt this has been speeded up by the ridiculously poor air quality along Oxford Street and the need to separate people and vehicles due to terrorism, but this is really exciting, nonetheless.
The section of Europe’s busiest shopping street between Oxford Circus and Orchard Street - that’s the corner of Marble Arch M&S & Selfridges - would be the first to become "predominantly traffic-free". However, north and south routes across Oxford Street will be retained after businesses and locals raised concerns about gridlock on nearby side-streets.
The plans would also see cyclists being forced to dismount on the pedestrianised stretch. The plans are designed to address concerns about rising numbers of traffic collisions, pollution and overcrowding. The proposals for the traffic-free Western section include new seating areas and raising the existing street to pavement level to make it more accessible. An 800 metre-long work of public art, acting as a centrepiece along the entire length of the pedestrianised section, could be commissioned. There will also be new public spaces, cycle lanes, improved pedestrian crossings, wider pavements and extra taxi ranks across the wider West End.
The first pedestrianised section will coincide with the launch of Elizabeth line services - and increased visitor numbers - through central London in December 2018.
Let’s be honest, the current Oxford Street isn’t a place you hang about in. You get in and get out. It’s not somewhere you can wax lyrical to tourists about either as it's slightly embarrassing and a busy mess. These plans can transform it from not only the busiest but the most attractive streets in the world. They need to have a contemporary concept and a "vision" - maybe ask Thomas Heatherwick? Or a competition to showcase the best of British architecture and design? - and really think differently rather than a simple repaving and adding extra benches. Let’s make this the centre of British fashion and style. Let’s celebrate our leadership in these areas. Fashion week outside Selfridges? Shopable shows on the retailers' doorsteps? The greenest street in the world? Cafés all along? Street theatres? Christmas markets? A street that comes alive after the shops close? This has so much potential and could be just over a year away. Exciting times.
Are the wheels coming off at Topman? From zero to hero, Topman is the poster boy of how brands, thanks to fashion and the sponsorship of fashion weeks, can go from uncool to cool in little over a decade, but, has their run of dominance on the men’s high-street come to an end?
Topman recently had a clear out of the top brass and creative. Gordon Richardson, who served as Topman's head designer for the past 17 years, has been pushed out along with many others within the Arcadia group. This is usually a sign of trying to stop the rot and starting something new.
Left - Will you be buying your tracksuit from Topman this season?
Taveta Investments, Arcadia’s parent company, doesn't break out individual figures for their brands, but financial figures released in June 2017 showed a 16 per cent drop in profits for the year to August 2016. Taveta Investments, indicated that annual profits plummeted to £211 million, while sales dropped 2.5 per cent to just over £2 billion. Taveta Investments, derived £1.7bn of revenue from the UK in 2016. That marked a fall from £2.2bn a year earlier, although up to £370m of that related to discontinued operations such as BHS, which was sold in 2015.
That’s a huge drop of £500 million or £130 million, if you take out BHS. That’s still a lot of clothes not sold.
So, what do we think has happened at Topman? Is it a case of these runs can’t go on forever and or is it something more serious?
One things for certain, it’s much more competitive than when Topman started out on its journey. Whether selling fashion or basics, there is much more choice, both offline and online.
Did they over expand? We know that Australia has struggled, with their franchise partner going into receivership recently, and the big push into America hasn’t really stuck as they don't seem to understand how fashionable us Brits are. American teens, in many cities, have nowhere to wear this kind of stuff.
Right - Has Topman peaked and how can they get their spark back?
Did it get too expensive? With labels like ‘Topman Design’ pushing the upper price points there is a perception that Topman was expensive, especially when compared to other high-street retailers. I’ve spoken to mums of teenage boys who say they leave Topman until last on a shopping trip as it’s usually the more expensive.
Topman’s buyers never committed to ‘Topman Design’. We had the shows, we had the collections, but when it hit the stores or online it was very bitty. They’d only make the trousers of a suit, for example, or items that didn’t really go with each other and the pricing was into three figures.
I think Topman has fallen into that gap of not being fashionable enough and not being cheap enough on basics and is falling into the void in the middle. They’ve lost the energy to ASOS, Boohoo and New Look.
I think there was a case of Topman believing their own hype too. You can’t afford to be arrogant in fashion and thinking you’re the coolest kid on the block, because things move fast and this will quickly bite you on the arse. The campaigns were a little too editorial and not relatable enough.
Fashions have changed too. Topman practically owned the skinny, three-piece suit and was selling volumes of a more expensive product. Now, the kids want sportswear and retro looking basics. It’s not the go-to place anymore. It’s lost its USP.
What are they doing? They’ve hired David Hagglund, known within fashion circles for founding a Stockholm-based creative agency which includes H&M and Hugo Boss as clients. He was also art director at Vogue Paris. David Hagglund is replacing Ms Phelan - Topshop head creative - and Mr Richardson in a 'newly created position' of creative director across both Topman and Topshop. Is combining Topman and Topshop a good idea? Or is this further cost cutting? It’s interesting they’ve given this important job to an Art Director type and it’ll be interesting to see whether Topman will get as much focus as Topshop. I doubt it.
The danger is, as they wobble they go safer, which is the wrong direction. Admittedly, Australia is having problems and America isn’t as fashionable as Europe, but young men want fashion and know it. Brands like ASOS and Boohoo are really pushing it, New Look has got a hell of a lot better and newness is the drug on the high-street.
Topman Design became a bit formulaic and they need to commit to it or scrap it. I think they’re going to find it hard to get that spark back. It’s very hard to do when you’ve lost it, but they’ve done it once before, so why not again.
There’s the juxtaposition between men’s basic and fashion led clothing. Basics are so competitive and difficult to make money from unless you’re doing huge volumes and buying basics from Topman is, well, a bit basic. Maybe they should leave that to Primark and Uniqlo and stick to making fashion.
I think they need to think more inclusive and not try to be too cool without losing the trends. Look what happened to American Apparel when they tried that achingly cool model. You need to be the coolest of the mainstream and, especially in Britain, have fun with it.
I think what we’ll see is, as leases run out, stores will close and they’ll be a renewed focus and growth of online. Topman needs to tighten up its collection and re-educate guys about what they do. As fashion cycles move, they need to aim for a new USP and focus on that. You can't be all things to all people today.
Note - A friend just mentioned on Facebook about the 'Philip Green Effect' and people boycotting his brands due to his handling of the sale of BHS and the hole in the pension fund. This could definitely be having an effect on Topman as many people are aware that he is the owner.
The week Marks & Spencer previewed their new AW17 menswear collection and instead of a traditional press day, which is usually a selection of clothes hanging on a rail or mannequins, they opted for a catwalk presentation.
Left - One of the models was Instagramming his six-pack on M&S's AW17 menswear catwalk show
They’ve done this previously, but, this time, it was a fun affair and they injected personality and humour into the proceedings. As well as a cross-section of ages of male models, there was a sausage dog, a little girl, a topless Instagram selfie taker, a musician, a guy wearing a tuxedo. You get the idea.
The idea was that it was men on the street and these were the characters in M&S clothes and the different type of guys they dress or can be dressed there..
There was one model carrying a coffee and even a guy holding one of those brown, square paper coffee shop bags. It was all very Sunday-mornings-avocado-on-toast, Bright-Lights, Big City and was aspirational enough.
The next day I woke up thinking about that coffee and paper bag and thought why weren’t they M&S branded? Why weren’t the models carrying M&S carrier bags? The answer is because they’re not cool enough. One of M&S’s checkerboard carrier bags says “egg & cress sandwich” rather than "modern, urban and fashion conscious guy".
And that’s the Brand Disconnect.
M&S needs to work backwards. It needs to think about making people feel good and want to carry a M&S bag and for it to be believable in a show like this. There is no reason why people aren’t happy to get their coffee and Danish from Marks & Spencer. There’s also no reason why they’re not happy to get the rest of their wardrobe from there either, but once it hits one of their green or white plastic bags it sucks the life out of the purchase. Any notion of special is gone.
And I think this is Marks & Spencer’s problem: it’s not the product, it’s the packaging. It’s just not cool or special enough. They have plenty of hot-food, coffee shop-type places and could easily make contemporary packaging for customers to take this away in. Or, even just simple brown bags with a printed logo. It’s not about disguising it’s M&S, it’s about updating and making people want to carry your brand. It's also not about money, well designed and contemporary packaging shouldn't cost much more.
They don’t have to go all hipster, but if they’re ever going to update and put back some retail magic they need to ask themselves why weren’t they happy for the models to be carrying current M&S packaging? Retail is detail after all.
Update Correction - Marks & Spencer's said "We are surprised about your branding comments, as we used both a branded coffee cup and a branded bag in our show (see pictures attached) and worked really hard to ensure we included lots of detail. Also, we have not offered the green carrier bags for over a year, in line with when the whole branding was re-designed in black and white".
I accept my mistake and it's good to see they used their own packaging. From where I was standing, at the show, the packaging looked plain and anonymous. I still think it shows how important bold branding and packaging is even in the most simple and everyday of purchases and how modern retailers want and need customers to be seen to happily carry their product.
I don’t often write about new retail, it’s usually pretty boring and cookie-cutter the world over, but when something’s good, it’s good, and on a recent trip to Venice with Diadora, we were taken to the Fondaco Dei Tedeschi, the first retail store in Europe by LVMH’s travel retail arm, DFS.
Left - Inside the main atrium space of the Fondaco Dei Tedeschi
Looking out onto the Rialto Bridge, across from the fish market, stands the Fondaco Dei Tedeschi. First constructed in 1228, it was once home to the German merchants - Tedeschi means German in Italian - who traded with those wealthy Venetians, taking spices and the like to Northern Europe. It became a customs house under Napoleon, and a post office under Mussolini, then lay empty. Until now.
Right - The Venetian red escalators and special Venice-inspired product graces the entrance
Thanks to LVMH’s deep pockets and Dutch architecture practise, OMA, it been transformed into a sympathetic, luxury with a small L shopping space that feels more like a cross between a boutique hotel and museum that sells things, rather than a boring collection of luxury concessions all jostling for customers and attention.
Left - On the top floor is this exhibition space with a lit floor that just needs a disco soundtrack
It’s one of the best retail spaces I’ve seen recently. The escalators are Venetian red, like moving red carpets, they take you up to the floors of men’s and women's fashion and beauty.
On the top floor is an exhibition space and on the roof is a viewing deck looking out over the glorious city that is Venice.
Right - Head to the top floor for one of the best views of Venice.
Opened in October, the Fondaco Dei Tedeschi has been updated, without losing any of its charm, by Dutch architect Rem Koolhaas – who was in charge of the exterior renovation – and architect Jamie Fobert – who handled the interior design.
Everywhere there is attention to detail. Every inch has been thought about: the floors, handrails, furniture, lights and the space has been designed for brands to flow, and in our ever fickle times, be replaced.
The brands are the same old: Gucci, Bally, Bottega Veneta etc., but because it’s such a nice building and environment it makes you want to explore regardless of it being the same tired things. To be fair, the brands have done a few special pieces with the colours of the Italian flag. Also, on the ground floor, they sell wine, souvenirs and other more affordable items.
The only negative was that it was so discreet, the name ‘ Fondaco Dei Tedeschi’, which doesn't exactly slip off the tongue, was only at the front door and you wanted to know/learn the name in order to tell other people how good it was. If you’re in Venice, definitely take a look.
You walk into the new Coach store on Regent Street and the first thing to confront you is Rexy, Coach’s T-Rex dinosaur. This isn’t the replacement for Dippy the Diplodocus, the Natural History Museum’s famous dinosaur, which is going on a regional tour, but it’s just as magnetic.
Left - Putting the sexy into Rexy!
The new store is impressive. It feels like a one-off. Coach has always been a perfectly acceptable, mid-market and luxury with a small l, brand.
Right - The handbags move around the Heath Robinson-type contraption
But, with this new store they’ve really stepped it up a gear. It shows a Creative Director - Stuart Vevers - putting himself into the brand and being allowed to do so. What they’ve done is thought about injecting personality and identity rather than focus solely on ‘luxury’.
So many brands get fixated on luxury and forget about identity and personality. For some, it’s all about the Carrara marble and shiny finishes and they’ve started to look soulless, empty and, ultimately, boring.
Left - Coach Regent Street's giant Rexy is going to be auctioned off
The new Coach store has a mechanical track with bags running along it, a giant pink neon dinosaur in the window and special product, downstairs, designed with British tourist badges and travel souvenir symbols. It’s fun without being gimmicky. It feels like somebody has thought about it rather than simply rolling out a format the world over. Yawn.
In contrast, I popped into the new handbag hall in Selfridges. The biggest in the world, when finished, it has all the usual suspects: Valentino, Celine, Balenciaga, Chanel, Burberry, all with their signature shop-fits. It all feels so predictable and formulaic. The only one of interest was Gucci with a mosaic floor featuring their, now, signature wasps.
Luxury needs personality. It needs a strong individual to lead with instinct and intuition. Brands need to create newness and not just consistency. Coach seems to not only made Rexy sexy, but also fun. It's approachable and welcoming. If brands are going to get us off our sofas, offline and outside, there needs to be something worthy of going out for.
TheChicGeek says, “Finally, Harvey Nichols has put its hands in its pockets and spent on its flagship store. Luckily, for us boys, it’s the menswear department that gets the first big overhaul. Working from the bottom up, Harvey Nichol’s new menswear department has been completely redesigned and what was and still is a difficult space has been given a fresh look while sorting out the flow and differing levels.
Left - The suiting/tailoring room
The 28,000 sq. ft. department, on two floors, has moved away from the that mini-airport concession look and given itself set rooms to cater for different customers and needs. Knowing they are limited on space, Harvey Nichols, is being clever by putting brands together on product rather than in set areas. So, if you want a formal suit, then all the formal suits are together. Accessories are scatted within the rooms and work together with the clothes rather than being stuck in defined areas away from each other. This is all about time and ease which, when selling to men, is a massive USP.
Right - The new 'Concierge'
There’s a new ‘concierge’, aka personal shopping service, in a separate area downstairs with generous changing rooms, some big enough for a whole family with their own sound systems and there’s no minimum spend.
As for the design, it feels designed, but not trying to hard, which is hard to pull off. It’s not trying to be ‘expensive’ or ‘exclusive’, it feels relaxed, welcoming and inclusive. There are lots of little touches like a set of stuffed birds and toy water guns which creates personality and lowers the serious factor.
Left - The only turkey I spotted
The white marble is there, the polished copper is there, plus a few mid-century modern pieces of furniture, yet it feels fresh and very ‘2016’, which I think is cool. It feels likes the kind of warm space you’d want to spend time in and revisit. As fashion becomes more mixed and broken down to item rather than price and branding, this feels like the future direction of retail and I'd be surprised if they don't see a massive increase in sales.
Harvey Nichols needed this badly and I’m pleased they’ve got what they deserved. It’s good. Go take a look.”
Knightsbridge based department store, Harvey Nichols, has been busy excavating their basement. Long the home of their menswear offering, this cavernous yet claustrophobic space is, we are told, being completely made over ready for its unveiling in spring 2016.
Left - Harvey Nichols' new store in Birmingham which gives us the direction stylistically of the Knightsbridge store's new men's basement.
So, what’s new? I recently attended a presentation of theirs describing how the new spaces are going to look. Bye, bye shop-in-shops and branded concessions: long the bastion of mega-brands, physically claiming prime spots in-store to be replaced by easily changeable spaces and the mixing of brands.
I'd like to think of it as a more democratic form of shopping: allowing labels to speak to people solely on product alone without the pre-judgement of walking over to a branded section or the muscling out of smaller brands by placing them in the parts of the store these mega-brands don’t want.
The big brands won’t like this. They will sell less. There will now be an equal playing field between them and whichever new brands Harvey Nichols decide to stock. It also allows Harvey Nichols to drop brands faster, regardless of size, to keep pace with the speed of fashion and allowing new brands to bring excitement and interest into their physical store.
People are tired of seeing the same brands everywhere regardless of how expensive they are. It also allows a form of curation rather than simply a mini-mall of the same designer names which you can find the world over.
Harvey Nichols know they can’t compete with the likes of Harrods and Selfridges on menswear floor space, so, they are making theirs more flexible and less static. This is a very clever idea.
Right - More interiors from Harvey Nichols Birmingham. Let's hope London looks this good
In order to survive shops need to become destinations. They need to offer something you can’t find anywhere else: something new, fresh and inspiring. They also have to flow, both visibly and physically, and, ultimately, part time-poor people with their cash.
One of the more interesting ideas they have is putting all the same things together. So, white T-shirts, tuxedos etc., all at different price points, selected by Harvey Nichols, are together with the sales assistants explaining the differences between them all.
Fashion’s big names have long earnt their corners of the big stores, but they sell more and remain powerful because they have the best positions and are, therefore, stuck in a positive cycle which is very hard to break, making retail spaces look the same every time and everywhere. It all becomes quite predictable and menswear buyers and the retailers want something different and exciting while still retaining the spend.
Harvey Nichols is seeing this refresh as an opportunity to try something new. No doubt they’ll be some difficult discussions with brands, but I hope they hold their ground and give these ideas a chance to prove that the customer, now, buys into good product rather than brands. Menswear just got a level playing field!
Opening April 2016