From dressing the Rolling Stones to Brad Pitt, and even James Bond, British luxury brand Sunspel has been the outfitter of choice for the rich, cool and famous for over 160 years. Chief executive Raul Verdicchi speaks to Retail Week about outperforming the market, opening new stores and dealing with Trump’s tariffs.
The Nottingham-based retailer was founded in 1860 as a high-quality underwear and hosiery brand. At the beginning of the 20th Century, Sunspel began making and selling some of the world’s first T-shirts – made from high-quality Sea Island cotton – and it’s now best known for these basics: underwear, T-shirts and polo shirts.
Chief executive Raul Verdicchi took over the running of the business in August 2023, having previously been the chief commercial officer at AlphaTauri, and having spent over a decade with Italian luxury giant Ermenegildo Zegna.
Speaking to Retail Week, Verdicchi explains how Sunspel is managing to outperform the flagging international luxury market, the brand’s exciting plans for new store openings and how it is dealing with the ructions in global fashion supply chains caused by the Trump administration’s ever-changing tariffs.
It’s been a tough year for many in the luxury space. How are Sunspel doing?
“We’re having a very strong year. In fact, growth has been consistently strong ever since the current owner acquired the brand. We’ve been growing at a double-digit rate each year. This year, we’re currently up 20%, with growth across all markets – around 9% in the UK and 25% in the US. Europe, especially Germany and France, as well as Japan, are also performing strongly.
“Much of the growth in absolute terms is being driven by the US. We’ve also been investing significantly, especially in store openings. While the last four store openings were in the US, this year we’ve opened two in the UK: one in London – our eighth store, located on Floral Street, Covent Garden, in April – and most recently in Edinburgh.
“Looking ahead, we have new openings planned: Paris in September and Tokyo in February next year. So, the brand is growing in a healthy way, without relying on heavy discounting. We’re continuing to invest, and the UK remains a core market for us alongside these international expansions.”
Will those Paris and Tokyo stores be Sunspel’s first in France and Japan respectively?
“Correct. In Japan, it will be our first direct store. We previously operated through a distributor, but that ended during COVID due to challenges on their side. So, this is our first fully owned presence there.”
How did the opening on George Street in Edinburgh come about?
“We look for locations with character. Whether they’re internationally iconic shopping locations, or ones with a particularly strong historical identity. George Street in Edinburgh has both of those.
“We don’t tend to open stores in traditional high-end shopping streets like New Bond Street, as our brand tends to perform better in areas with authenticity and a neighbourhood feel. We also ensure the space is sufficient to present the full collection properly.”
You’ve also opened several US stores in recent years. Given the uncertainty around the US retail environment now, particularly for international brands importing into the country, have the tariffs had an impact on your costs?
“We’ve had a presence in the US for many years, and we have grown through wholesale and online. Our recent expansion in retail reflects our confidence in the market.
“Tariffs have mainly increased our costs but that hasn’t affected customer demand. To mitigate this, we’ve accelerated the launch of a local logistics centre, which was initially planned for next year but will now go live this month. This will improve efficiency and reduce delivery costs.
“Also, it’s worth noting that Sunspel produces in the UK and Portugal – not in Asia – so we’re less impacted by the more severe tariff increases applied to goods from China or other parts of Asia.”
Given the issues still facing the fashion industry, and luxury more specifically, are you confident for the rest of the year?
“We’re feeling confident. We have a major relaunch of our underwear category this September – including new designs, packaging, and a renewed focus on our heritage. We’re also excited about the Paris and Tokyo store openings.
“Beyond that, we’re exploring further expansion in the US, both East and West Coasts. So, overall, we’re preparing for continued healthy growth through the end of the year and into 2026 – always mindful of external macroeconomic factors, but optimistic.”
No comments yet