Kate Bostock will take the helm at occasionwear retailer Coast this month. Rebecca Thomson looks at what her appointment as chief executive might mean for the business.
Coast is likely to have an exciting time in the coming 12 months. Not only is it about to strike out on its own following former parent Aurora Fashions’ demerger, but its new chief executive, former Marks & Spencer clothing boss Kate Bostock, is about to take the helm.
The retailer has become known for its occasionwear - glitzy dresses for weddings, proms and special events.
With a change of boss imminent, and Coast poised to make the leap into independence, its direction may change.
Coast chairman Derek Lovelock is optimistic about the retailer’s next phase of development. He says: “Coast has the ability to broaden its range and appeal. If anything, in people’s minds Coast is focused on formal [wear]. But in this marketplace people are looking for more versatile product.”
He says the range will shift to encompass different types of clothing in a bid to capture more of the market.
It will target shoppers who are dressing up for any kind of event, whether it’s a wedding or mid-week drinks, although Lovelock adds the clothes will remain “beautiful and contemporary”.
“We want to offer something that appeals to everybody’s taste,” he says.
Bostock is joining Coast little more than a month after she left her role as executive director of product and trading at Asos. She exited the etailer after six months, having decided it wasn’t for her. She joins Coast months after its former parent Aurora revealed it was to demerge its brands.
Coast will become a standalone business, and former stablemates Oasis and Warehouse will come together under new parent Fresh Channel.
Anusha Couttigane, fashion consultant at analyst Conlumino, says Bostock’s tenure is likely to involve a tightening of strategy, rather than a significant shift in direction.
“Rather than a radical departure, it will be more about getting Coast back on track,” she says. “It has been struggling a little bit. Kate Bostock has a good relationship with the key personnel and she will help drive them towards unified goals.”
Lovelock confirms he is “delighted” Bostock is joining the retailer. “Kate and I have known each other for years.
When I knew I was going to need a new CEO I took the opportunity to ask her. She has a great affinity for the product, which is quite unique.
“She sees the potential for the brand. Her experience in meeting customers’ demands and in product development, allied with her expertise at leading teams and implementing strategic plans, will be invaluable to Coast.”
Broadening appeal
But, while it will undoubtedly be an interesting time for the retailer, Lovelock says the changes facing Coast in the coming year will not include an IPO or a sale - no float on the stock exchange is planned for the immediate future and there is no sale process in place.
The next few months will involve a close look at product and ranges by the senior team. The aim will be to make sure Coast is not seen as one-dimensional, and it will sell clothes that suit a range of occasions. Kantar Worldpanel analyst Glen Tooke says that is likely to be a good way of tapping into current market trends. “People don’t have a huge amount of money. They want investment pieces that aren’t just to wear once, but can be worn to a variety of things,” he says.
He believes the signs are already good in terms of Coast’s broadening appeal. “Spend is less concentrated in the age brackets it used to be,” he says. “It does appear that the age range of customers has started to broaden.”
Historically Coast has relied on the 25 to 44 age group, but Tooke says over the past year more of its revenue has come from the under-25s and over-65s markets.
Balancing such a variety of age ranges is a challenge, but it’s one Bostock has ample experience in following her years at M&S.
Tooke says: “It could be argued that the shift to a slightly younger market is a good long-term strategy for growth if Coast is able to retain these consumers and build their loyalty. But it also does not want to risk alienating the bulk of its customer base.”
Lovelock says the focus will be on breadth. One of the retailer’s strengths is that it still has a clear niche on the UK high street - its challenge now will be to extend its range beyond posh frocks.
With Bostock at the helm, Coast looks ready to do just that.
At a glance: Coast
Chairman Derek Lovelock
Chief executive Kate Bostock (starts on September 16)
Stores 41 UK standalone shops
Concessions 166 in the UK
Sales £91.3m in the year to February 2012
UK Sales £75.8m
Pre-tax profit £1.5m
Who does it target? Mainly 25 to 45 year olds. It sells contemporary fashion for formal events such as weddings. However, Lovelock says the retailer has the potential to broaden its appeal to less formal occasions such as “going for a meal or drinks”.
Who does it compete against? For occasions such as weddings, Coast faces competition from department store groups such as Debenhams, while other premium fashion retailers such as Reiss, Jigsaw and Hobbs compete on less formal clothing.
Kate Bostock’s retail career
After graduating from Derby College with a diploma in Art and Fashion Design, Kate Bostock started as a trainee at knitwear supplier Klynton Davis. She then joined supplier Bent & Son and later launched her own brand, Charnwood Designs.
In 1994 Bostock began her career on the high street when she joined Next as product director for kidswear.
She remained there until she was hired by George at Asda in 2001 as product director, where she was responsible for clothing and footwear. She was subsequently appointed Marks & Spencer head of womenswear, and continued to work up the ranks before becoming director of general merchandise
in 2008.
During her long tenure at Marks & Spencer she spearheaded a more fashion-led offer across the retailer’s labels and sharpened up sub-brands including Autograph, Limited and Blue Harbour.
Bostock was among those touted to replace former M&S chief executive Sir Stuart Rose.
However, Bostock admitted that she “never wanted to be chief executive” of the retailer. She said: “I didn’t honestly want to do that job. I think that role in M&S is not for me.”
Instead the role went to former Morrisons boss Marc Bolland, a man with whom she is understood to have had a sometimes difficult relationship.
Bostock, who was number 40 in the Retail Week Power List this year, holds an honorary doctorate in business administration for her services to fashion retail from Manchester Metropolitan University.
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