Can “Cheap Chic” Retail Get Even Cheaper?

A large customer segment wants to look good with their apparel, but — at the same time — pay less than before. The competition for for this segment is already intense and will probably become even more so with the U.S. entry of U.K.-based Primark.
As Peter Evans reports for the Wall Street Journal:
“Primark, the U.K. fast-fashion chain that sells T-shirts for a couple of pounds and doesn’t believe in online retailing, wants to make it big in the U.S. Don’t expect it to play by the rules. Jokingly nicknamed ‘Primani’ after the expensive Italian fashion house Giorgio Armani, Primark is a long way from being a luxury retailer. Dresses sell for the equivalent of $18, chinos for under $20, and boots go for $25.”
“Able to respond rapidly to changes in fashion tastes, especially among young shoppers, Primark has built its success on similar foundations to Hennes & Mauritz AB’s H&M chain and Inditex SA ’s Zara. Only Primark does it cheaper. In August 2014, Primark’s clothes were priced 48% below the market average in the U.K., according to research from Bernstein.”
Click the WSJ chart to read more.

 

 

This entry was posted in Global Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer and tagged , , , , , , , , , , , , . Bookmark the permalink.

One Response to Can “Cheap Chic” Retail Get Even Cheaper?

  1. Pingback: Will Fast Fashion Work at JC Penney? | Retailing: From A to Z by Joel Evans

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