Blog: Supermarkets could teach fashion retailers some online lessons

Grocers Asda and Morrisons have both recently revealed plans to push their own brand clothing ranges through their websites amid a backdrop where many fashion retailers are finding trade tough.

Asda’s well-established George label is targeting overseas business by opening up the George.com website to 24 European countries. Meanwhile, Morrisons is ending its concessions with Peacocks to launch its own brand of kids clothing called Nutmeg, which is set for a transactional site within the next year.

Clothing is a hard sector to trade in currently with even the specialist retailers coming unstuck as the two stories come amid fashion retailer Republic’s collapse and subsequent rescue by Sports Direct owner Mike Ashley.

Republic had 121 stores when it collapsed into administration due to poor trading. Although Republic’s number of stores were not cited a reason for its collapse, it is believed that it may have expanded its estate too rapidly.

And if we take a look at the other administrations so far this year of HMV, Jessops and Blockbuster, the crux of their collapse was due to a lack of online capabilities.

It is a sensible decision then for Asda to open up its website to such a wide range of European countries, while for now only opening stores in specific locations in the Middle East.

Asda learned a hard lesson when it was forced to close George stores in the UK in 2008 after profits struggled.

Online however George.com is one of the UK’s fastest growing fashion retailers, and it is the third largest clothing retailer by volume and value.

Morrisons on the other hand, which does not yet have a transactional site for its food offer will launch a transactional site for its Nutmeg brand within a year after it has debuted in at least 150 stores.

If the launch is successful, Nutmeg will be another own brand success story for the grocery sector as it continues its attack on non-food categories.

With many fashion retailers facing a tough time, it may be that despite their experience of the sector, they could learn a lesson in business from the supermarkets.