An unscientific survey admittedly, but an analysis of the branded hoodies on a flight back from the French Alps last week revealed that even Abercrombie & Fitch was being left in the wake of Superdry.
An unscientific survey admittedly, but an analysis of the branded hoodies on a flight back from the French Alps last week revealed that even Abercrombie & Fitch was being left in the wake of Superdry.
Aside from making this editor feel rather old, the sheer number of trendy snow types wearing the brand was a sign of just why it was named Retail Week’s Emerging Retailer of the Year two weeks ago, and why its institutional share offer closed so heavily oversubscribed just the previous day.
Founder Julian Dunkerton is going to become very rich as a result of SuperGroup’s float, but it’s good news for retail as a whole that at least one of the sector’s entrepreneurial success stories is going to get its IPO away. The float will be successful partly because of its potential for growth - standalone stores, international expansion, womenswear and the internet are four big avenues - and because it hasn’t been in the hands of private equity, thereby avoiding the extreme caution that the institutions are showing when it comes to private equity exits.
But for Dunkerton the hard work starts now. Running a quoted business hugely increases the scrutiny on a chief executive, and mavericks like Stephen Marks and Mike Ashley have struggled with the intense pressure that the City places on chief executives. He’ll also have to get used to the fact that there isn’t a natural fit between fashion retail and the City. All fashion businesses have the odd bad season, but investors aren’t tolerant of that.
And the brand can’t stand still. Even if its styles don’t change much from season to season, creating a brand that endures is a massive challenge. Ted Baker has shown it can be done, but it has been a struggle for French Connection and even Abercrombie plans to close stores in the US. Ensuring Superdry is as sexy in 2020 as it is in 2010 is the biggest challenge facing Dunkerton and his team.
Green will be back
Ever since Richard Jones joined Tesco from Sainsbury’s in 2008, the question has been when rather than if he would take over from Terry Green as its non-food boss. Green’s bumptious style isn’t everyone’s cup of tea, and his role in the collapse of Allders upset a lot of people. But he knows about selling garments, and has successfully built Tesco’s fashion business when a lot of people said he wouldn’t last five minutes amid its straight-laced management. It’s unlikely we’ve seen the last of him.
No comments yet