The contemporary retail landscape across the UK is undergoing a transformation, leaving many to wonder who will step up to fill the void. In this edition of Pulling Threads, I'll share my insights, particularly focusing on men's fashion. While I lack the insider information and access to data that larger corporations possess, I offer my perspective, acknowledging that it's a subject open to interpretation and my overall opinions could be way off.
The unraveling of luxury platforms is evident to all observers. While there are numerous factors contributing to this phenomenon, I believe the core reason is the cyclical nature of the fashion industry. Every 7 to 10 years, the industry experiences significant shifts, leading to changes in consumer behaviour. Luxury fashion has become oversaturated, prompting consumers to become more price-conscious. This, in turn, creates opportunities in the contemporary market space. Investors, seeking promising returns, gravitate towards these emerging trends, making the contemporary sector increasingly appealing.
A noticeable change in consumer preferences is underway. Just a year ago, sportswear dominated the fashion scene, but now we're witnessing a shift towards a blend of fashion and athletic wear or even a preference for fashion as everyday attire. This evolution suggests a growing desire among consumers to dress up rather than solely rely on sportswear, which was previously associated with comfort during lockdowns. This subtle change is likely to compound over time, raising questions about the future growth of sportswear brands and the overall saturation of the market.
As a brand venturing into wholesale, we recognise the importance of engaging with independent retailers. Our interactions have revealed a mixed sentiment among them—some are pessimistic about the future, while others see opportunities in filling the void left by larger retailers. We remain committed to nurturing these relationships and expanding our presence. However, identifying national retail partners poses a challenge, given the current landscape dominated by sportswear and luxury brands.
Taking Liverpool City Centre as an example, our recent partnership with Alive & Dirty in Liverpool One demonstrates promising results. We're actively collaborating on promotions to enhance brand visibility and drive sales—a testament to the potential of strategic partnerships in navigating the evolving retail landscape. Furthermore, we speculate on potential opportunities for established retailers to adapt and thrive in this changing environment. From reimagining sale strategies to introducing contemporary offerings, there are various avenues for retailers to explore. Additionally, the emergence of independent concept stores presents an intriguing possibility for industry collaboration and nationwide expansion.
We talk a lot in our office about where another opportunity could lie, so here’s some insight into our conversations: Tessuti makes sense to keep trading as a sale shop until the surplus sale stock is reduced. Flannels could bring in a floor offering a contemporary, more premium feel. Footasylum could elevate and reintroduce a Drome style of fashion in-store. JD could look into the ‘Open’ concept from the past. USC, opening on Church Street, has an opportunity to own this space. NEXT operates a premium platform on their website; could they be looking at rolling out a multi-brand concept across the UK? It is also worth mentioning that we are going live on Debenhams' premium marketplace soon, a space I know they are actively looking at growing. Could they roll out retail stores across the UK? As I said, I have no access to any conversations going on at any of these companies and could be a million miles off. Though, something inside tells me someone will soon make a play to fill this void.
In conclusion, while luxury and sportswear continue to have relevance, the momentum is shifting towards the contemporary space. Influential trendsetters within peer groups are already embracing this shift, signalling its broader appeal. As investors gain confidence in this sector, we anticipate a surge in investment, further solidifying the position of contemporary retail in the UK.
As always, we welcome feedback and insights from all stakeholders on this topic as we navigate this exciting yet challenging transition. Anyone who is interested in contributing to future editions please let me know.
