written by Martha Ngatchu.
Every week there is a breaking news story of yet another British retailer on the brink of collapse. Just this morning, Drapers announced that Topshop, Debenhams, New Look and Marks & Spencer are the retailers most likely to be consigned to the retail graveyard. With consumers increasingly searching for the latest thing at the best value, the British High Street is really suffering.
On the other hand, pure play fast-fashion retailers like Boohoo and Asos continue to see strong, if albeit slower, growth. Whilst brands with a quicker speed to market rate, like Zara and Primark, are also succeeding amongst a difficult climate.
However, it’s not all doom and gloom; the luxury industry is booming despite news of economic slumps in major markets like China. The Global luxury fashion industry is set to grow by up to 4.5% in 2019, a figure that is still being driven by growth in Asian markets. This optimism is reflected in the British Luxury market. Whilst store closures are rife for British fast fashion retailers, the number of new luxury brick and mortar stores is increasing. Vogue Business reported that Luxury flagships now occupy up to 75% of retail space on fashionable Bond Street, up 63% from 2010 figures. Recent additions like LVMH-backed Loewe and Celine, which is set to open up shop in the famous W1 location later this year further demonstrate the appetite for luxury fashion.
Whilst it may be a tough climate for fast fashion high street brands, luxury’s moment in the sun means there is certainly opportunity for brands operating at the higher price points.
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