Department store retailer John Lewis is making a renewed push into the fashion market with a number of new initiatives designed to boost its online fashion sales as well as in its stores, where a focus on upmarket labels is planned.

The employee-owned retailer today (14 September) said it hopes to add an extra GBP70m (US$116.3m) to its online fashion sales over the next two years with a relaunched website that has just opened for business.

And in its stores it is rolling out a new luxury shop fit on some of its 27 women's wear floors to showcase new designer brands.

"We want to mirror and exceed the growth that we've achieved in fashions in our 27 John Lewis branches, and ensure all the great niche brands in our stores are available to a much broader audience," explains Robin Terrell, managing director of John Lewis Direct.

"Fashion online is one of the biggest business opportunities for John Lewis over the next three years and there will be a significant step change in our customers' shopping experience online."

Fashion currently represents around 6% of the retailer's total online sales, and the new look site aims to drive revenues up by 30% this year.

It features more than 200 fashion and beauty brands as well as new search and navigation technology such as drop-down menus with product information in an easy-to-follow format.

Editorial pages will provide customers with seasonal trend guidance, style guides will encourage shoppers to put outfits together as they browse, and new product pages will help narrow product searches.  

There will also be 16 new 'Brand Boutiques' launching this autumn, including Ralph Lauren and Orla Kiely, to carry the department store experience through to the website. 
 
INSIGHT

The decision by John Lewis to focus on fashion - particularly premium brands like Hudson Jeans, Elie Tahari, Mulberry, Ralph Lauren and Nicole Farhi - is in marked contrast to the direction taken by many of its competitors over the past year.

With clothing widely seen as one of the sectors hardest hit by the slowdown in consumer spending, other stores have tended to focus more on cutting prices than going upmarket in an attempt to encourage shoppers to part with their cash.

But online fashion at all price points has consistently bucked this trend, with a steady flow of business migrating from the high street to the internet.

In fact, the latest research shows online sales of clothing, footwear and accessories in the UK rose 18% between June and July, and were up by 17% against the same period last year.

The IMRG Capgemini e-Retail Sales Index, which tracks online sales from 100 retailers, found that UK shoppers spent a total of GBP4.2bn (US$6.9bn) online in July 2009, up 15.7% on June and 16.8% on July 2008.

Crucially, clothing retailers also seem more adept than other sectors in turning visits to their websites into final purchases - which is largely due to more sophisticated marketing and email campaigns.

Recent data from John Lewis also suggests its online business is already exceeding expectations, with sales in the week ending 5 September 24% ahead of budget, although alongside fashion this also includes items ranging from home furnishings to consumer electronics.

The department store retailer's push into push into upmarket fashion will be keenly watched by the rest of the market since its performance is widely seen as a barometer of consumer spending.

The move will enable it to establish its online credentials ahead of its competitors, as well as pitching it against established online fashion specialists such as Asos (which sells a limited collection of designer brands), and designer emporiums like net-a-porter.

And its expansion mirrors that already taking place in the US where Gap Inc's Piperlime site has added apparel to its online sales mix, and retail giant Walmart has set up a new website to sell brands from other retailers.