New whitepaper findings from retail merchandising and store operations provider, Island Pacific reveal strategies for growth and their technology impact
New whitepaper findings from retail merchandising and store operations provider, Island Pacific reveal strategies for growth and their technology impact
With few indicators suggesting the current economic situation is likely to change anytime soon, many in the fashion retail market are looking to make operational investments to maintain their current levels of profitability. What is evident is that many aren’t stopping there; they want their investment to support and foster strategic differentiation and growth.
“Fashion retailing is a tough business, but it is becoming even more so with the economic pressures every business now finds itself under,” said Robert Kenny, merchandising director for UK branded clothing retailer, USC. He went on to say “From increasing labour costs to rising cotton prices and VAT, it is even more important to make the retail space we’ve got work even harder for us. We have to justify what we put into every square foot of that space. So we use our merchandising systems to identify space performance and profit, as well as managing other key metrics.”
All in the same boat
These pressures are not confined to the UK. Across the water US retailers are facing the same situation. “We’re constantly looking to improve every aspect of our operations,” said Alex Mitnik, senior global retail systems director for Polo Ralph Lauren. “But with challenges we also see opportunities to do things better.” For Polo Ralph Lauren, “the strategic focus is now all about driving values around the edges of the core system”. Mitnik has been working with Island Pacific systems to translate data into information to support planning and execution.
What’s clear is that fashion retailers, from multinational brands to emerging international businesses, are all looking to core systems, including finance, sales, merchandising and planning to support more strategic decision making and drive every possible efficiency. Not content to sit still, many retailers have ambitions to grow their web storefront to have a global reach.
L.K. Bennett, a successful UK-based luxury women’s brand has set its sights on international expansion, with ambitions to grow beyond its current 120 locations across the UK, US and Europe. Alison Egan, L.K. Bennett chief operating officer, said the company took the decision to invest in new infrastructure three years ago, even though the economic downturn was on the cards, in order to establish strong systems and reporting prior to the planned international growth.
Range and promotions key
So, while recessions will come and go, the combination of external business pressures felt today with the internal stresses of store layout, merchandising and promotions are bearing down harder on this sector than ever before. Even those fashion retail operations that thought they were light enough of foot to run the leanest operations are looking for an extra edge to anticipate demand more accurately and stay ahead of the competition.
All three brands took part in a new report, “The new state of retailing: What every fashion retailer needs to know to survive and prosper” produced by Island Pacific, which looked at the benefits a technology-driven approach can deliver – even in these challenging economic times.
