While the Edinburgh Woollen Mill Group has reportedly received interest from several potential buyers for both Peacocks and Jaeger since they fell into administration, the sale process is only the first hurdle that these players have to overcome in order to survive in the long-term.
For the ultimate acquirer of each of these brands, investment in digitalisation will be paramount to capitalise on consumers’ shifted shopping habits, while elevating Jaeger’s mix of casualwear will allow it to better cater to shoppers’ evolved lifestyles.
Since the two brands fell into administration in mid-November, Jaeger has attracted the most interest from potential buyers. This is surprising considering its premium price points and focus on formalwear, which has fallen out of favour throughout the Covid-19 pandemic due to a lack of social events, and as consumers continue to work from home.
For any entity that eventually acquires the brand, its higher prices must be justified through more unique designs and sustainable fabrics. Expansion of its casualwear offer would also help to boost Jaeger’s relevance as consumers continue to spend more time at home, and it would need to display these ranges prominently on its homepage, in marketing communications and on social media to drive awareness.
Retail leaders M&S and Next are both reportedly interested in acquiring Jaeger, with the expectation that they would choose to make the brand a concession within their own physical locations. This would allow for greater accessibility and improved visibility of Jaeger among a new segment of consumers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSee Also:
With Next boasting the strongest revenue growth, as well as an impressive third-party proposition and e-commerce platform – with online accounting for around half of its total sales prior to the pandemic – it would have a much higher chance of making Jaeger a success than M&S, which has always lagged behind on digitalisation.
However, there is more overlap between M&S and Jaeger’s customers, which may make for a more seamless integration of the brand.
Torque Brands, the owner of TMLewin, is also said to be planning a bid for Jaeger, with its expertise in formalwear putting it in good stead to effectively transform the business. And Jaeger’s former owner Harold Tillman is among those rumoured to be interested in buying back the retailer, and he has already managed to successfully revive it once before.
Peacocks portfolio
Peacocks has the largest store portfolio out of the Edinburgh Woollen Mill Group’s brands, as well as the highest UK clothing market share, which is forecast to remain steady at 0.8% in 2020, since its value pricing, casual ranges, and large childrenswear offer have helped it to retain more demand throughout Covid-19.
Despite this, Peacocks has not seemed to have received as much interest surrounding an acquisition. If the brand does survive, improvements to its lacklustre digital proposition must be a focus, as the shift towards increased online shopping will continue following the pandemic.
Investment in AI capabilities like personalised size recommendations and product suggestions would ease the shopping process for those less accustomed to using this platform, while more inspiring images within campaigns and on product pages would entice more impulse purchases. Celebrity collaborations are also needed to boost brand image and compete with value competitors such as George and Primark.
While Edinburgh Woollen Mill’s current owner Philip Day has denied speculation that he plans to buy either Peacocks or Jaeger out of administration, this possibility has not been ruled out entirely. Having overseen Peacocks since 2012, Day would have the best experience to implement a turnaround plan, and successfully steer the business through the woes of Covid-19.
Though the Frasers Group seems likely to bid for some of Arcadia’s brands once it falls into administration, it has also been widely reported as a prospective buyer for both Peacocks and Jaeger, as well as the core Edinburgh Woollen Mill brand itself, which also fell into administration earlier in November. However, the group has recently claimed that administrators are giving preferential treatment to former owners.
Frasers Group has acquired several struggling players over the past couple of years, including House of Fraser and Jack Wills, so already has a lot on its plate, and may be unable to give Peacocks and Jaeger the attention they would need to survive. Furthermore, Peacocks would fail to fit in with Frasers Group’s new premium strategy.
