Blog: Michelle RussellTesco 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.”

Sectors: Apparel, Retail

Companies: Tesco, Arcadia

BLOG

New project to benefit garment workers in Ethiopia

The growing interest of international brands to source garments from Ethiopia provides an opportunity to develop the sector in a sustainable way, the founders of a new project in the country say. Laun...

BLOG

Mexico tariff move "unfathomable" and "concerning"

In a surprise move late last week, the US announced new tariffs on all imports from Mexico – starting next Monday (10 June). The tariffs are in response to the flow of migrants crossing from Mexico in...

NEWS

Tuong Long switches production to aniline-free indigo

Vietnam-based Tuong Long has become the first denim manufacturer in the country to switch 100% of its production to an aniline-free indigo solution developed by colour and speciality textile chemicals...

BLOG

Major brands urge Trump to pull footwear from tariff list

A coalition of 173 US footwear brands, including Nike and Adidas, is urging US President Donald Trump to remove footwear from the proposed tariffs list on goods imported from China, saying it would be...

BLOG

Trump moves forward on tariff threats

The ongoing tariff war between the US and China took another turn last week in a move US apparel and footwear retailers and importers have been dreading, as the Trump administration moved forward on t...

just-style homepage



Forgot your password?