Blog: Leonie BarrieTrolley dash

Leonie Barrie | 21 May 2007

Sainsbury’s is confident that its Tu own label clothing range will be able to underpin ambitious sales growth in the company’s non-food offer. And with profit margins on non-food sales typically higher than the margin on food (even premium food), this could be the most logical way of achieving its sales goal. 

Asda and Tesco have grown non-food ranges aggressively in recent years (the George and Florence & Fred lines respectively). But their experience has also shown that getting the right balance between non-food and food is not easy and that management time and store space still need to be focused on the core food ranges if the business as a whole is to continue to grow.

Sainsbury’s has also failed to reveal exactly how it intends to expand its clothing lines, other than pointing to new layouts, fixtures, fittings. Its plans could also be scuppered by a resurgent Asda which is mulling the expansion of its Asda Living concept from seven stores up to a possible 300. Another threat includes fears that consumer spending will be hit by higher interest rates.

Sainsbury’s sees clothing as key to expansion plans


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...


Hanjin Shipping collapse triggers fear of West Coast port repeat

The recent bankruptcy of South Korea's Hanjin Shipping, the world's seventh-largest container shipper, at the end of August, has left billions of dollars worth of merchandise in limbo, leaving the fal...

just-style homepage

Forgot your password?