February 11, 2017

Why Are Big Fashion Retailers Suffering?

   February 11, 2017

Why Are Big Fashion Retailers Suffering?

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Editor’s Remarks:
When asked this week what they thought was behind the struggles of big fashion retailers in recent years, The Market Mogul’s readers overwhelmingly put it down to the rise of e-commerce. Dedicated online fashion retailers like Otto and Asos have grown into huge businesses by offering wide selection and taking some of the stress out of shopping by offering delivery and returns. At the same time, giant platforms like Amazon and Alibaba offer a level playing field for all kinds of distributors and labels to sell their products on. This has meant brutal price competition for traditional retailers, to the extent that even high street names trying to drive their online presence are struggling to keep up: this week, for example, New Look announced a nearly 40% drop in pre-tax profits for Q4, and a 4.7% drop in like-for-like sales.

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