Between the ‘loungewear’ emails and the ‘we-give-a-shit-please-buy-something’ emails, some brands have been hoping to offset some of the losses of physical retail with online. Online has the potential to be many brands’ life support machines; keeping some form of cash flow ticking over and the lights on.
Left - Net-a-Porter has closed its American website & warehouse
Dixons Carphone has said sales surged by more than 70% as Britons rushed to buy laptops, games consoles and freezers to cope with the coronavirus outbreak. Online sales in the UK and Ireland surged 72% in the three weeks to 21 March.
“There will be some recovery through online operations but overall the loss of sales will adversely impact our full-year profitability and cash position,” it said. The group said as a result it would still miss out on about £400m of sales between now and the end of its financial year in April.
Fashion has a lot less ‘need’ and as such will be harder hit. Fashion brands have huge amounts of stock sitting in stores, not going anywhere anytime soon. These shops have now become in-town warehouses, but they still need manning and this has become a problem for some brands. Many consumers seem to think that online and offline is separated, robotically picked and magically appears on their doorstep.
The family owned department store chain, Fenwicks said in a statement: "Our people, both employees and customers alike, are at the heart of our business... Therefore, we have taken the decision to temporarily close our website as well as our stores, to ensure the safety of our teams and customers.” Fenwicks only went online in 2017 and pick the items from in-store stock.
Schuh, the footwear retailer, too has closed its website. Chief executive Colin Temple said: “At this point in time, the UK government guidelines include that online retail should ‘still open’ and ‘is encouraged’ along with advice that if staff cannot reasonably work from home, they should continue to go into work.
“However, with the Schuh head office and DC operations based in Scotland and Scottish Government advice conflicting with UK government advice, Schuh management have made the decision to close their website, in addition to their stores that already closed from the evening of Sunday 22 March.”
He added: “A number of DC staff continue to indicate that they want to work within the warehouse to support the Schuh online business, along with other departmental employees offering their support also. However, Schuh management have confirmed that the website and stores will remain closed until there is updated UK and Scottish government advice.”
No doubt demand has fallen overall with many people tightening their expenditure and only buying what they need. But, what about the exclusively online retailers? Most surprising is Net-a-Porter/Mr Porter has closed its American business. Customers visiting the US site are now met with a message that reads: “In line with local government guidelines, and for the health and safety of our community, we have temporarily closed our warehouse. We hope you are all staying safe and look forward to welcoming you back soon.”
This is a nightmare for fashion brands selling products with a shelf life. The discounts have already started, and they’re big, Liberty of London went straight in with 50% off. Some retailers are doing okay at online, but even the best figures won’t replace physical retail, representing a 20/80 split between online and offline. To shift all this stock they will need to discount heavy, eating into profit margins, and consumers, used to a never-ending supply of ‘Just In’ will have to adjust to a new shopping landscape with less choice.
Update - Next, River Island & Moss Bros have announced their websites will close.
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Young men are officially the biggest consumers of footwear in the UK. Move over Carrie Bradshaw, or is that reference way too old when you consider many of these 16-24 year old men weren’t even born when she started shopping for her Manolos.
According to the latest research from Mintel on footwear retailing, 95% of British males aged 16-24 bought shoes last year, making them Britain’s number one footwear buyers.
There’s been a revolution in men buying shoes and while women (86%) are still more likely to purchase footwear than men (78%), females aged 16-24 (10%) are twice as likely to have not purchased footwear in the last year compared to their male counterparts (5%), as the continuation of the casual and ‘athleisure’ trends drive men’s footwear sales.
Male shoe addicts are fast catching up on women. Men’s footwear accounted for 37% of all footwear sales in 2017, up from 34% in 2015. Valued at £4.38 billion in 2017, sales of men’s shoes increased an impressive 31% between 2015 and 2017. In comparison, sales of women’s shoes grew by only 10% over the same period to reach £5.48 billion in 2017.
“Men’s footwear, particularly among younger age groups, is really fuelling growth in the footwear sector.” says Chana Baram, Retail Analyst at Mintel. “In fact, our research shows that men aged 16-24 are more likely to be swayed by big brand names than women of the same age.” says Baram. “With trainers such a popular category for men as a whole, young men in particular are likely to respond positively to advertising campaigns by the big sports brands that feature their favourite male sports personalities.” she says.
This footwear sales growth is being fuelled by trainers, trainers and more trainers. Casual shoes and trainers are now the most popular shoe styles purchased by men.
“These are not just essential buys, but, got-to-have-it buys,” says Richard Wharton, footwear veteran and founder of Office & Offspring. “It’s all about the latest sneaker, there are millions version of that: the luxe trend, the Balenciaga Triple S, Off-White, Converse or Vans or whatever.” says Wharton. “These young guys have never worn formal shoes or been forced into wearing them at school. They buy what they want,” he says.
“Sneaker culture has really grown, from being a niche market to having mass appeal,” says Pamela Dunn, Senior Buyer, Schuh. “The rise of exclusive collabs and hard-to-get releases from brands like Nike/Adidas has fuelled the sneaker market.” she says.
In our age of sportswear and dress-down, our footwear choices have mirrored this and what was once unacceptable in certain social situations has now become mainstream and mass. Comfort is key.
“In modern offices nobody wears any other formal attire anymore so it’s acceptable to wear sneakers,” says Wharton. “Hype’s there. Before you didn’t have trainers for different occasions,” says Wharton. “Where you had that in formal wear, you, now, have that in sneakers: all black sneaker for work, weekend, something casual, or a club, maybe Dior or Louboutin,” he says.
The trainer market has grown to such as size that there is now multiple categories within this market and men are buying a full wardrobe of trainers for every social occasion. Designer brands have piled into this market seeing big margins and huge volumes. But what are these guys buying into?
“Big brands at a more mass market level like Nike/Adidas or more top level brands include Off-White / Gucci / LV etc.” says Dunn.
“It’s so broad. They are buying high-end street couture to basic Vans or Converse,” says Wharton. “Nike rules with guys buy into their new technology. There are huge queues waiting for the next thing and Nike limit it, so they drip feed it in.” he says.
Boys are buying brands and this may go someway to explain the latest movements within the men’s footwear market. Ted Baker recently bought back its shoe license for £21 million. The fashion brand bought ‘No Ordinary Shoes’, the worldwide licensee, from the Pentland Group. “This is an exciting opportunity to drive further growth in our footwear business by leveraging our global footprint and infrastructure, in line with our strategy to further develop Ted Baker as a global lifestyle brand,” said Ted Baker founder Ray Kelvin.
As Pentland lost Ted Baker, it appointed Marc Hare as the new ‘Product Director of the Lacoste Footwear Joint Venture’. He will be leading the new ‘Mainline’ and ‘Future Concepts’ product teams and working with Lacoste JV CEO, Gianni Georgiades, to support the company's vision for the brand. Marc Hare is known for his luxury evening styles and his, now, defunct Mr Hare footwear label. It’ll be interesting to see whether Pentland want to grow Lacoste further out from its sporty origins or use Hare’s skill by giving those sports shoes an elevation to compete within the luxury sneaker market.
What these brands see is growth, but is there further room for expansion or is the market becoming saturated?
“I think males will increasingly buy into footwear in the future, but the market will change,” says Dunn. “I think exclusive products may become less desirable, but brands that are big now will become even more dominant e.g. nike/adidas.” she says.
“It depends when it becomes saturation point,” says Wharton. “So many people want comfort that looks cool and there are multiple sub-genres such as Japanese sneakers, and Palace/Supreme collabs,” he says.
While the sports brands continue to offer newness, limit 'exclusive' product and raid their archives for classic styles, the trainer market seems healthy and will sustain the desire of men to keep adding to their collections. But, this rise of young men becoming the largest consumers of footwear is skewed towards one category and it will be interesting to see how the footwear industry gets this entire generation off their sport wears addiction and into a pair of leather lace-ups.
The final warm days of autumn are the perfect excuse for TheChicGeek to get on his bike and fill his lungs full of fresh air. Wearing outdoor specialist, Merrell, 'Eagle' boots, TheChicGeek took flight onto his bike and onto a woodland trail.
A superior hiking boot with 80s styling, the Merrell 'Eagle' is great for walking, cycling and with even enough support for running. Here, TheChicGeek, has teamed them with a classic red and white Breton stripe top and cycle trousers with reflective details in a dark slate colour and gives a whole new meaning to 'Fashion Cycle'!
Credits - Merrell Heritage ‘Eagle’ Boots available at Schuh.co.uk Backpack - Manhattan Portage, Breton Top - Club De Mer from The Original Breton Shirt Co., Trousers - Spoke 'Bulletproofs', Watch - Mondaine