Opinion: A real brand is more than a name on a label

In the high old times when sales growth was often much easier to come by, retailers launched their own brands with gay abandon and the tills rang merrily.

Now, when conditions are tougher, own brands need to earn their living. But some simply do not have the cachet they should have.

In its full-year update this week department store group House of Fraser reported that sales of third-party brands were up close to 4%. In contrast, its own house brands suffered a 2.1% decline.

As a result, five underperforming house brands will be axed and attention devoted to “improving the quality and designs of the most popular and best-performing brands”.

A similar story was expected from House of Fraser’s department store rival Debenhams, which will report on Thursday.

There, new chief executive Sergio Bucher was expected to prune the Designers at Debenhams offer, which has not evolved sufficiently.

Brands need constant nurturing to maintain and enhance their associations and appeal. It’s not enough simply to come up with a name and stick it on a label.

Many years ago, when Marks & Spencer’s food offer was not performing at its best, I remember someone asking me why anybody would buy M&S’ eats when Tesco’s Finest range was better quality and better value.

Loss of focus on brand attributes such as quality and value was in part behind Tesco’s eventual decline. Similarly, their rekindling has helped the grocer find success again.

The same is true at the Co-op, where focus on its own label has also helped it re-establish its food credentials.

Successful own brands can be a retail Eldorado, bringing better margins. But the shopper’s purchasing decision is not based on margin, but on more enduring qualities.

As House of Fraser and others review their own brand stables they can learn from Ted Baker, perhaps the prime example of a retailer that has created a genuine brand and zealously stayed true to its original vision.

Let’s hope for post-election stability

Prime Minister Teresa May’s decision to call a snap general election means that the rollercoaster political ride that the country has been on for the past few years is not over yet.

As the campaigning gets under way and the arguments about Brexit and Britain’s future rage, it means more uncertainty for voters, ie consumers, and therefore for retailers.

Britain needs stability, said the PM as she explained her decision to go the polls. That’s true.

Come June 9, when the results of voting should be known, the hope must be that things will settle down, consumers will feel less uncertain and retailers will have a clearer view of what sort of trading environment they should be planning for.

Shoppers and retailers alike will wonder how far the pound in their pocket will go, whether stocking up at the supermarket or buying from overseas.

In the immediate aftermath of the election announcement sterling fell but soon rebounded.

Its relative stability at the time of writing perhaps augurs well for the outlook for the nation and for retailers.