When Primark – the value retailer in UK – opened its new Central London store on Friday and offered Jeans at GBP 8 and Bikinis at GBP 2, there was a stampede in the store resulting in long queues outside the store…….
Is GBP 8 a very attractive price? Yes, it is – especially when you get a jeans which is little better than a basic jeans.
Primark is among the other value retailers like New Look, Tesco,Matalan, Asda etc who have enjoyed good growth in past couple of years . On the other hand, high end retailers like Marks & Spencers have performed well . However, it is the mid market stores like Bhs, Littlewoods,C&A and department stores which have suffered volumes.
Does it mean that the market is getting concentrated in the TOP (niche designer clothing) and the BOTTOM (value retailing) leaving the Mid Market in a Soup?
Well, indications do suggest the same. Mid-Market : beware and adjust your strategies accordingly!