Archive for September, 2010

Myer family invests in baby brand

Thursday, September 23rd, 2010

The Myer family has announced that it will enter the baby goods market.

The family will invest up to £3 million with the Headline Group ahead of the latter’s move to roll out the leading British maternity brand, Mothercare, in Australia.

The announcement of the substantial investment coincides with the news that Headline has moved to acquire Babies Galore, the struggling baby retailer, in a move that will see 13 new stores added to the group’s operation, with forecasted revenues set to reach as much as £65 million.

Managing director of Headline Group, Brent Dennison, said that negotiations with the Myer family had been going on for some time. These discussions revolved around what would be considered the most ideal time to invest in the group, and how the cash injection would be best utilised. The Headline board of directors will now feature an appointment from the Myer family.

Famous for its in-store trained midwives in the UK, the Mothercare chain opened its first Australian store in March in Melbourne, with a further 10 stores launched since then. With the addition of the Babies Galore outlets, which will be converted to Mothercare over the next 18 months, the group will total 31 dedicated Mothercare stores, while also operating the 29 Early Learning Centre stores around the country. Mothercare Plc has been so impressed with the roll-out of the new stores this year  that they invested around £8 million in July with the Headline Group, obtaining a 25 per cent stake in the process.

Asda overhauls own label range

Wednesday, September 22nd, 2010

Leading UK supermarket chain has launched a multi-million pound overhaul of its in-house range.

The mid-market own-label selection will be rebranded to become Chosen by You, as Asda splashes out around £100 million in the new facelift which is aimed at addressing the ongoing slide in the group’s market share.

Over 3,500 items from food to drink were overhauled in the nine month process, which saw customers involved in more than 200,000 taste test according to Andy Clarke, Asda CEO, speaking at a London conference yesterday. The new range, which previously has recorded annual sales of around£8 billion, will be available in all of the group’s outlets as from today.

According to figures from Kantar Worldwide data, the share of the UK grocery market held by Asda has fallen steadily for the past nine months, while the group’s market share price has slid to just 17.2 per cent over the past three months, significantly trailing its major competitor Tesco, who leads the pack with a 30.8 per cent market share. The own brand range, which includes the Extra Special premium range and the Smart Price value range, makes up around half of Asda’s total sales.

Asda said the rebranding marked a real change for the group, which will now focus on the mid-tier Asda brand Chosen by You. This will see the group highlight what they call their ‘value hat-trick’ of service, quality and price. Careful consultation has been made with the UK public, with some 40,000 customers participating in blind taste tests across the country in recent months, leading to the addition of 500 new products and the modification of 1,000 more that reported room for improvement.

Naked models shock London Fashion Week

Tuesday, September 21st, 2010

London Fashion Week has always been at the cutting edge of the runway culture.

Now, it appears as if the last taboo in the fashion industry has finally been broken, after models showed off what not to wear.

Adorned in just heels and big hair/ hat combinations, the models showcased the offerings of wig maker Charlie Le Mindu, although viewers were treated to the runway nudes showcasing rather a lot more.

As a wig maker, there can be no denying that naked models will draw attention to your designs, but industry purists may find the bold decision less than appropriate. There has, for some time, been an unwritten rule that the catwalk is not the place for full nudity, though few designers offer pieces that require no clothing at all. French-born Le Mindu has only been at the helm of his new label for just over a year, but in that time has managed to grab headlines with a series of flamboyant and quirky creations such as wigs in the style of the Eiffel Tower.

The 24-year-old Le Mindu, whose creations are a favourite of Lady Gaga, has caused the biggest stir so far at London Fashion Week, only days after the launch. The audience was certainly not prepared, with many of the industry’s leading lights visibly discomforted by the nudity. Still, the naked forms on the runway were an improvement from his Fashion Week debut last year, when animal rights activists were outraged at a full headdress made from rat and mice carcasses.

French Connection reports slower growth

Monday, September 20th, 2010

Retail fashion group French Connection is in a more cautious mode in the second half of the year.

After the first six months of 2010 resulted in a profit for the British outfitter, slow sales in recent weeks at retail outlets have kept celebrations muted.

The impending VAT rises and winter budget constraints have hampered spending by consumers, many of whom are returning from summer holidays and tightening their purse strings. Despite this, French Connection said last week that year-on-year comparisons with wholesale orders were still ahead, with the group forecasting slow by steady progress for the full financial year.

Like many in the fashion industry, French Connection has been streamlining its services to achieve greater profitability, with the latest round of restructuring seeing the sell-off of the loss making Nicole Farhi brand. In addition, partnerships in Europe and Japan have been scaled back in favour of the US, with the group claiming it has signed a new North American licensing partner. The deal will see LF USA, owned by the Hong Kong consumer goods exporter Li & Fung Ltd earn up to $10 million in net royalties over the next five years.

The latest direction for French Connection follows recent years of struggle following the decline of the popular FCUK brand. In stark contrast to last year’s £5.4 million pound loss, the group has finally been able to report a profit, though tough times are still ahead.

London Fashion Week showcases ethical labels

Friday, September 17th, 2010

Known as the birthplace of edgy designer clothes, London Fashion Week has taken a new direction.

The fashion industry has changed in the past few years, with smart designers responding to widespread changes in attitudes. This means that having a wardrobe with a conscience is now almost as important as celebrity endorsement.

Today, for the first time in its history, the British Fashion Council – which runs the iconic London Fashion Week – has added a sustainable catwalk show to its program. While ethical fashion has existed on the periphery of the industry for some time, it now finds itself sharing the limelight thanks to acclaimed international designers such as Christopher Kane and Burberry.

Clarence House is the setting for the open air event which will see established designers such as Vivienne Westwood and Stella McCartney joined by the likes of People Tree and Junky Styling – the former known for its celebrity partnership with Sienna Miller and Emma Watson. While both Westwood and McCartney will have later shows in London and Paris, their presence at the ethical runway adds significant clout and influence.

The show will be held in conjunction with the Prince’s Charities Foundation initiative START, which seeks to promote and celebrate sustainable living. London Fashion Week is already the site of Esthetica, the static exhibition which showcases those designers on the edge with a commitment to eco-sustainability.