Blog: Tesco and Arcadia tie-up highlights growing trend
Michelle Russell | 28 October 2015
Tesco's deal with Arcadia to sell some of the apparel group's largest brands in its supermarkets is a style of collaboration we are increasingly seeing more of as retailers secure a ready-made customer base and guaranteed footfall.
The UK supermarket retailer this week announced a deal that will see Arcadia open versions of its Dorothy Perkins, Burtons and Evans outlets in select Tesco stores across the UK. In a separate deal, Tesco will also provide space for Claire’s Accessories, Sock Shop and Pavers.
The outlets are expected to compliment the retailer's F&F own-label apparel line and comes as CEO Dave Lewis attempts to turn the fortunes of the retail group around. The company faced a GBP263m accounting error last year, and has seen an erosion of its competitiveness in recent years, and a significant drop in UK trading profit in its last fiscal. In its first-half, operating profits were down 55% and like-for-like sales fell 1.1%.
Rupal Karia, managing director of retail and hospitality UK and Ireland at Fujitsu, believes collaboration between non-competitors is becoming increasingly popular, with Tesco and Arcadia’s partnership the latest example.
“We have already seen success with Argos and eBay in doing this,” he noted. “With increasing competition from their high-street counterparts, this type of partnership has become a priority for online retailers who are looking to establish a physical presence with a partner that has a ready-made customer base and guaranteed footfall.
"For the ‘high street’ retailer, working with an online counterpart offers an added convenience to their customers. Presenting customers with a viable alternative to simply shopping online, there is an expectation of a wider customer base, which will in turn result in more sales.”
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
- US apparel sector braces for potential cost hikes
- Trade Tracker – Trump's first weeks, Brexit agenda
- Vietnam grows share of US apparel imports in 2016
- Does a hard Brexit mean hard times for UK fashion?
- Key trade issues facing US textiles and apparel
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Ralph Lauren new execs to support Way Forward Plan
- Sales at US clothing retailers jumped in January
- Li & Fung dropped from Hang Seng Index
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar