Coming out of lockdown on 12th April… Underlines speaks to 50 independent retailers in England to find out their hopes, challenges and lessons learned over the past 12 months. What changes will they make to their day-to-day business operations and what products will they lead with to attract consumers back to bricks and mortar? Only last week the Office of National Statistics updated their ‘basket of goods’ for measuring inflation to include hand sanitiser, smart watches, exercise equipment for home use and… loungewear!
Over the last year the underwear sector has been more resilient to the overall drop-off in sales than the rest of the fashion sector but estimates* still reveal that that decrease for the year is between 12-15% (and between March-June 2020 a dramatic fall of nearly 50%!). Where demand for items such as loungewear, sports bras and comfy bras increased there was also sales decreases in those lingerie items which might be considered ‘non-essential’. There has been a shift to buying more underwear online and this is a main concern for most of the retailers we spoke to. Likewise cash flow is a major worry to independent retailers as most (two-thirds) will open on 12th April on an appointments only basis and were vocal about the problems with VAT and levies for imports from Europe. Notwithstanding although many have been cautious and limited their forward ordering, there is still a build-up of stock, even when running their own transactional websites to service their customers (all interviewed had websites for their businesses and two-thirds now had fully transactional sites).
So what do these retailers feel are their biggest challenges when they re-open their doors?
Time and time again, the message emerged that they were concerned how to actually get consumers to come back to bricks and mortar on a sustainable and commercially viable level: attraction/convenience of buying online and sometimes cheaper, the ‘fear’ of shopping that will still be experienced by some consumers and indeed the ‘gloomy’ ambience of their local high streets which have been decimated by closure of non-apparel chains and department stores. But not all is doom and gloom – most reported that they had experienced great loyalty from their customers and a definite desire to shop local once allowed more social freedoms. This loyalty has been fully earned with almost all outlets keeping in touch on a consistent basis via Facebook, Instagram, Zoom and phone calls (Facebook being the most popular of social media) and practically all of those interviewed said they were much more active on social media than ever before.
What products will they lead with in their window displays?
The majority will play to their strengths with spring fashion lingerie: encouraging consumers to come and get fitted and treat themselves to a fresh summer underwear wardrobe. Far fewer are taking a gamble on showing swimwear (although April in any normal year would be a peak time for showing swimwear). Perhaps this will change as the month progresses with the recent news that it is likely families will be spending their summer holidays at UK coastal resorts! The only good thing we can remember about the second three months of 2020 and the first lockdown was the absolutely glorious weather.
Retailers are aware that their high street or local area will have changed from March 2020, perhaps beyond recognition. And these changes represent opportunities as well as challenges. With the complete store closure of chains such as Debenhams and the partial store closure of John Lewis & Partners, 50% of retailers felt that there was an argument to be made for sourcing more moderately priced lingerie collections (alongside their existing collections) to capture those consumers who previously only or mostly visited department stores. Others felt it was more important to differentiate themselves from a mainstream offer by presenting collections that could not be found everywhere.
More pertinent is that 96% felt that they now had an opportunity to capture ‘new’ consumers who would not/could not go to department stores in their area for fittings – that their fitting expertise could be expanded to a wider consumer base than previously.
One thing that clearly emerges is that the COVID crisis has ramped up the agility of retail at all levels. Even the smallest of the outlets we interviewed are moving towards more digital communication and having to make business decisions quickly (with maximum flexibility against a backdrop which no-one had a blueprint for). The most difficult task to tackle may be forecasting – all normal seasonal patterns have literally been tossed aside and no-one is even really sure if this will be our last national lockdown so retailers have the difficult task of planning for several different trading scenarios. Virtual fittings on a one to one basis were offered by some consultancies & stylists and specialists experienced with post breast surgery consumers but this has not developed into widespread adoption during the lockdowns.
Wacoal Europe is the first to offer free virtual bra fittings with its popular Fantasie brand. The one-on-one virtual fittings will be available via a 3rd part booking platform, whereby the consumer will meet a Fantasie fit expert to aid with any bra fit advice, whether that’s to find out bra size or to help with finding the right bra style to suit the consumer’s shape. It is intended that the service will be rolled out right across the company’s portfolio of brands.
On the subject of brands’ performance during the crisis opinion is split – some have been pleased with the level of support and understanding they have received during this extraordinary period and others not so much as one retailer commented: “Some manufacturers have treated me with kindness and we tackled this situation as a team. And some showed their dark side and after years of business treated me badly.” Another retailer felt “we need to support the suppliers that support us by being kind and understanding when dealing with stock payments and buying/cancellations.”
Certainly it will be those brands which have an open and frank communication with their stockists that will survive and even thrive throughout the rest of 2021. It also seems that the crisis has shown some retailers that there are business trading partners that are ‘fair weather friends’. 46% of those we interviewed were ready to try new products and put new brands into their mix if they could feel confident that they could keep their premises open. And there is a huge desire to meet up again face to face with their regular and new suppliers – 98% said they were happy and eager to attend a summer trade event in the UK by August 2021.
After the initial ‘shop til you drop’ when stores reopen there will doubtless be a levelling off of consumer demand. Carol Segal (owner of Carols of Bishops Stortford) adds a note of caution: “We are all going to open with a smile on our faces and I’m sure take some money. But we have the Autumn/Winter to get through (Oct/Nov) which is always so quiet. That’s when I think you will see what’s truly happening. How strong different businesses really are!”
*Mintel Market Report Underwear June 2020
