According to a report by Retail Week and Bloomreach, Frasers Group is on track to become the leading fashion retailer in the UK in the next few years. By 2026, the report predicts that Frasers Group will secure the number one spot, with seven of the top 10 retailers in the UK shifting positions. Notably, three of the top 10 will be fashion and sports retailers, indicating the resilience of sportswear and athleisure in the market.
The report attributes Frasers Group’s rise to its successful “premium elevation strategy and lucrative acquisitions.” The company has made strategic acquisitions, including Missguided and I Saw It First, as well as expanding its Flannels chain. In addition, the rebranding of its flagship store on Oxford Street to Flannels X, to attract Gen Z consumers, is expected to play a key role in its success. Frasers Group’s strong presence in the sports sector, with established relationships with major brands like Nike, is also contributing to its growth. Furthermore, the company’s recent increase in ownership of shopping centres is likely to fuel its expansion even further.
The report predicts that the top five retailers in the UK will be Frasers Group, Next, M&S, JD Sports, and Primark. Notable changes in the top 10 include John Lewis and TK Maxx dropping in rankings, while Nike and ASOS rise. The report also highlights the significant rise of TFG, the owner of Whistles and Hobbs, Next-controlled Reiss, and luxury department store Harrods.
In terms of key strategies, the report emphasizes Next’s acquisitive approach, as it recently acquired Made.com, Joules, and Cath Kidston. Next’s investments in the Beauty Hall concept, department store-style shops, and customer-focused strategy are expected to be crucial to its success. M&S is set to benefit from a focused recovery strategy, new brand partnerships, and ongoing improvements to its product offering. Primark, on the other hand, plans to capitalize on the resurgence of physical store shopping and its click & collect rollout, gradually introducing e-commerce while driving store footfall.
While John Lewis is projected to drop in the rankings, the report suggests that the retailer is not in terminal decline. It has experienced a strong bounce-back in its fashion sales, with the share of total sales rising from 33% to 37%. The company’s investments in fashion and kidswear, including partnerships with Thelittleloop and Hurr for rental services, indicate a focus on strengthening future revenues.
In conclusion, the UK fashion retail landscape is expected to undergo significant changes in the coming years, with Frasers Group poised to become the top retailer. Its success can be attributed to its premium elevation strategy, lucrative acquisitions, and strong presence in fashion and sports. Other retailers will also experience shifts in their rankings as the industry continues to evolve.
Useful links:
– Article: The Sports Fashion Brands Primed to Overtake Legends
– Report: Rise of Multi-Million Euro Online Bucket List Brands
