World Is George At Asda’s Oyster
In 1990 George Davies a fashion entrepreneur founded George at Asda, whose business model is centred around interpreting high fashion trends and then manufacturing low cost versions which are then sold in supermarkets.
The model has proven to be very successful, however of late, the entire fashion industry has faced a number of challenges in everything from tough economic conditions which produce low consumer confidence, to higher commodity costs in the form of cotton prices, to rising wage pressures in China.
Andrew Moore, managing director of Asda’s clothing retailing unit George, in an interview with the Financial Times said the company had a tough first quarter of the year, particularly in women’s wear, however Mr. Moore says that April has largely been good, as bank holiday season coupled with warmer weather kicked in, and the country was captivated by the royal wedding.
According to Mr. Moore, consumers remain nervous, which means that trading conditions continue to be volatile. Essential summer items, such as socks and underwear always do well, whilst men’s wear and children’s wear also remain solid. In the all important women’s wear segment, dresses are strong and swimwear according to Mr. Moore is “going through the roof” with high double-digit increases in sales.
“But customers are being quite cautious about more discretionary merchandise . . . that perhaps isn’t as versatile or you may only wear a few times . . . party wear for example. There are definitely signs of customers being more cautious about that and more practical. [They are] really focused on what they need to buy, first and foremost,” he says.
George, which analysts estimate delivers annual sales of roughly £2 billion expects sales from stores open at least 12 months will increase.
Despite fragile consumer confidence, the cost of manufacturing items is rising, with those retailers who cater to the value for money sector bearing the brunt because they have the least flexibility to raise their prices.
Although labour costs in China continue to rise, cotton prices have begun falling. In order to mitigate an environment of rising costs and inflation, George at Asda is seeking to take advantage of some of the muscle its parent, the world’s largest retailer has, and is stepping up joint procurement efforts, beginning with fabric purchases.
Despite all that, Mr. Moore estimates that George will have to raise its prices by anywhere between 5 to 8 per cent come October.
Since George’s business model is largely based on volumes, higher prices is a worry for Mr. Moore, who used to work at Marks and Spencer, helping George Davies establish Marks and Spencer’s clothing label Per Una.
Mr. Moore says his primary concern is protecting the lowest price items from price increases by as much as he can“ That is where our volumes are. So actually in terms of volume changes, I think it will be very minimal,” he says.
However there is a much larger issue in the fashion industry at play. two decades ago, the idea of buying clothing from a supermarket remained a novelty, today however the novelty has faded as ever increasing numbers of consumers do some form of clothes shopping in supermarket asiles.
Rival retail chains are beefing up their clothing offering, with Tesco, the UK’s largest retail chain undertaking a major revamp after admitting its offering simply was not up to the mark.
Market research firm Kantar Worldpanel ranks George the UK’s third biggest clothing retailer as measured by volume, whilst Verdict a consultancy firm ranks its fifth as measured by value of sales.
Mr. Moore has embarked on a strategy on focusing on customer needs, using them to develop products, as the clothing retailer seeks to move forward.
Recently the retailer engaged with thousands of its customers as it sought to obtain a deeper understanding of their requirements.
Simultaneously George is also seeking to add style whilst continuing its core focus on quality and value. The clothing retailer is sponsoring Graduate Fashion Week, with some collections to be chosen to be offered as web exclusives in time for the Christmas shopping season. George Facebook fans will get to have a say in which designs they thought they liked best, which will help the team at George develop the designs into wearable garments for its customers.
“What we have to do is continue to reinvent ourselves,” says Mr. Moore who is increasingly focusing on the company’s online offering and its development internationally.
Andy Bond, Asda’s former chief executive set ambitious goals for the super market chain, with plans to open as many as 150 standalone home and clothing stores by 2015, targets which so far have failed to materialize, with only just a handful of stores opening.
“When Andy made the announcement 15 months ago or so, we didn’t realise that the economy was going to be quite what it has been. But, we’re still fully behind it and it’s a big opportunity for us,” says Mr. Moore.
George plans on opening its first international franchise stores, most likely in Lebanon and Dubai next year, and this autumn, the company will be revamping its website.
If the franchise stores in the Middle East, it is highly likely that more stores will open up in other parts of the world.
“I will not say the world is our oyster,” says Mr. Moore, “but if it is successful, and we are very confident it will be, we will be looking at other regions as well.”
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Save Up To Half Price And Celebrate 21 Years Of George With The Mid Season Sale
George at Asda is celebrating its 21st anniversary in style with a terrific new mid season 50 per cent off sale. There are serious deals to be had. New Holiday essentials starting from just £7. Swimwear items staring from as low as £10. Men’s shirts that were previously priced £8 are now available for just £4.
It’s a ridiculous sale with tons of bargains on offer and great deals to be had by one and all. Baby clothes starting from under £5 school wear starting from as low as £2. Childerens Holiday gear from as low as £5.
Make sure you hurry and check out George at Asda’s Half Price Mid Season Sale today.
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Recommended Daily Amount Of Fruit And Veg Costs Just 50 Pence
New research by the World Cancer Research Fund says that the cost for shoppers wanting to consume the recommended five portions of fruit and vegetable a day is less than 50p.
Many experts have expressed concern that rising food prices would mean that many lower income families would be deterred from healthy eating.
According to the WCRF study though, five portions of fruit and vegetables can be purchased from the leading supermarket chains for just 42p.
Kate Mendoza, head of education for the WCRF, said: “We understand that rising food prices mean many people feel they have little option but to buy fewer fruits and vegetables. But while some fruits and vegetables are very expensive, our review shows that this is not the case across the board.”
“Even if you were to only buy fresh produce, there are many where a portion is available for under 10p. This means that with a bit of planning it is possible to buy plenty of fruits and vegetables on even the tightest of budgets.”
She added: “We hope our list of five portions does inspire people to think about creative ways they can eat fruits and vegetables less expensively. One way is to buy produce that is in season and that is seen as less exotic than fruits and vegetables that may cost much more but are no better for your health .”
“Other ways to shop more economically are to opt for tinned and frozen fruits and vegetables . These count towards your 5 A DAY and they also tend to be less expensive and keep for longer.”
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George At Asda Baby Event Free Delivery Voucher Code – Offer Ends 09-05-11
George at Asda is back again with a free delivery voucher code for its annual baby event and this time for a lower minimum spend. Customers who place an online order for baby wear worth just £10 or more will be entitled to receive free delivery on their purchase. For those who wish to take advantage of this sweet deal, all you need to do is make a baby wear purchase worth £10 or more from George at Asda on or before 9th May 2011 and enter voucher code baby22 at check out, and you will be entitled to receive free delivery on your order.
- Place Order For Baby Wear Valued At £10 or More With George at Asda
- Enter Voucher Code baby22 At Checkout
- Receive Free Delivery On Your Order
- Offer Ends May 9th May 2011
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George At Asda Baby Event Free Delivery Voucher Code – Offer Ends 03-05-11
George at Asda annual baby event is once again here and to celebrate George has an awesome new voucher code that provides free delivery to online customers who place an order for baby wear worth £15 or more. For those who wish to take advantage of this sweet deal, all you need to do is make a baby wear purchase worth £15 or more from George at Asda on or before May 3rd 2011 and enter voucher code baby22 at check out, and you will be entitled to receive free delivery on your order.
George At Asda is also offering 2 for £8 on selected lines so hurry now and check it out.
- Place Order For Baby Wear Valued At £15 or More With George at Asda
- Enter Voucher Code baby22 At Checkout
- Receive Free Delivery On Your Order
- Offer Ends May 3rd 2011
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Please Note - All Prices Quoted Are Correct at Time of Posting
Asda To Begin Stocking Hershey Chocolates
UK supermarket chain Asda has announced that it will begin to offer its customers products from US confectioner Hershey, following strong demand from Asda customers for the company’s iconic chocolate brand.
Asda says as part of an international distribution deal Hershey reached with Asda parent Walmart, the supermarket chain will add 12 Hershey products to its shelves including the world famous silver foil wrapped Hershey Kisses.
This comes at a time when research commissioned by the retailer revealed that over half of UK tourists who travelled to America returned with Hersheys chocolates, and that over two thirds of the chain’s customers saying they would like to have Hershey products available in the UK.
Chris Silcock, category director of impulse grocery at Asda said: “We know that Hershey’s is an iconic American brand, which is loved by Asda customers who have told us they want to see it on shelves in the UK.”
“We are bringing the best of the US to the UK with this exclusive range of great American treats, while offering a new addition to tickle Brits’ taste buds.”
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