Follow us

Menu
PARTNER WITH USFREE NEWSLETTER
VISIT TheIndustry.beauty

Editors' Top Reads: News from H&M, Frasers, Paris Fashion Week and more...

TheIndustry.fashion Team
27 September 2024

Here are some of this week’s news and features highlights handpicked by TheIndustry.fashion team.

H&M

How H&M plans to reignite sales after “challenging start”

Despite holding the title of the world's second-largest listed fashion retailer, H&M group reported slipping profit margins after high costs and fierce competition hit operating profit during 2024.

The retail giant, whose portfolio includes H&M, & Other Stories, COS, Arket and more, this week revealed that its net sales for Q3 of 2024 (1 June – 31 August) remained flat at £4.35 billion (SEK 59 billion). This caused an 8% dip in its share prices.

However, something is brewing in the water over at H&M. Ever since it dropped its heavily advertised AW24 collection - faced by none other than techno-pop sensation Charlie XCX - it seems as though the brand and group are bouncing back for a renaissance. Gathering the fashion troops, the retailer has set in motion several initiatives this month, including upgrades to physical stores, the roll-out of a new digital experience and the commencement of experiential events including its LFW opening party.

Though there's no certainty these efforts will raise H&M's sales, if I had my educated guess... it certainly will. Is high-street fashion back with a bang?

Chloé Burney, Senior News & Features Writer.

How Frasers Group is redefining the department store concept with Frasers

It was interesting to get a full store tour of Frasers Group’s new combined 100,000 sq ft Frasers and Sports Direct store at Meadowhall Shopping Centre in Sheffield prior to its opening this week.

It was also a classy touch to have David Epstein, Managing Director of Premium and Luxury at Frasers Group, and Ger Wright, Managing Director of Sport, as the store tour guides answering questions along the way.

Some might still think it’s a bit strange to combine what was once House of Fraser - but is now a very different Frasers – with a Sports Direct, but this is the 11th incarnation housing both. The thing they certainly have in common is Frasers Group’s overarching “elevation strategy”, driven by the company’s CEO, Michael Murray, which has raised perceptions of the group and attracted more high-profile and better brands.

Epstein talked about how the group inherited "an archaic department store business" in House of Fraser, one that belonged to another era. The new Frasers is much more modern, agile and forward-thinking, which appeals to a younger customer while retaining relevance for older customers.

As Epstein also points out, the benefit of coming as Frasers Group means they can bring so many different components all under one roof. The new Frasers now incorporates USC and also has Sofa.com as a homeware concept, and there are a lot of different offerings within Sports Direct, including Evans Cycles and GAME.

"On the high street today, there aren’t many groups who can offer sports, premium, lifestyle, luxury, beauty – all those different areas – in one space," said Epstein. He has a point, and it’s well worth listening to.

Tom Bottomley, Contributing Editor.

Alto Hospicio, Chile (Alamy)

Government urged to implement variable EPR fees for fashion and textiles

Leading industry bodies, UKFT, the British Fashion Council and the British Retail Consortium have joined forces with some of fashion's biggest names (including Burberry and Marks & Spencer) to urge the Government to implement variable EPR fees for the industry to support its move to a circular economy.

It may seem perverse for an industry to ask for fees to be levied upon it, but in this case, it makes sense. Best to take control of this situation now and have a say in how an Extended Producer Responsibility (EPR) system should be introduced rather than wait for it to be foisted upon us in an unworkable (and far too expensive) manner. Because it is going to happen at some point.

A White Paper on the subject has been created with QSA Partners outlining how an EPR fee scheme could work with funds being invested in local operators who can process end of life clothing, rather than brands and retailers taking direct responsibility for handling this themselves (the global nature of fashion would make this almost impossible).

We will watch with interest to see how this one develops.

Lauretta Roberts, Co-founder, CEO and Editor-in-Chief. 

London Designer Outlet

London Designer Outlet celebrates 'record-breaking' August sales

London Designer Outlet this week reported its strongest-ever sales performance outside of December, with August sales totalling over £10 million. This tops off a successful summer for the retail and leisure destination, having also achieved its best-performing summer on record for June and July 2024.

It follows a programme of major shows at nearby Wembley Stadium, including Taylor Swift, Bruce Springsteen, AC/DC and Green Day, each driving footfall and sales to the centre.

The summer of sport and music also follows a longer period of consistent growth, with LDO's sales outperforming non-London UK outlets in three out of the last four reported quarters, according to data from CACI's UK Shopper Dimensions.

With Dua Lipa, Oasis and Coldplay all set to perform at Wembley Stadium next summer, it's full steam ahead for London Designer Outlet as it looks to continue on its positive trajectory.

Sophie Smith, News Editor & Senior Writer.

Balmain SS25

PFW SS25: Balmain blends beauty and fashion in ‘power face’ show

Paris Fashion Week is drawing to a close in the French capital as I type and it is always my favourite of the Big 4. Paris is where all the big-hitters show and it's always great to see who's on the up (e.g. Chloé) and who's treading water (it pains me to say it but Dior, I'm looking at you).

I've yet to see Chanel and I can't wait to do so, but thus far the show that has inspired the most interest for me is Balmain. Normally this is a show that passes me by to be honest, but the blend of beauty and fashion presented by creative director Olivier Rousteing was intriguing and shows exactly where this house sees its future (as a fashion AND beauty powerhouse).

The PFW show was as much of a launch event for its new fragrance line, and a preview event for Balmain Beauty (which is expected to launch this autumn), as it was a fashion show. Clutch bags in the shape of fragrance bottles and make-up palettes were everywhere while intricate beading on "power face" dresses created the effect of eye make-up and blusher. The colours used throughout, from foundation-style nudes to lip-stick reds, were resonant of cosmetics.

It's well known that major brands make huge money from fragrance and cosmetics but to see a ready-to-wear show being used as such an obvious vehicle to promote that side of the business is new. I wonder if we will see more of this in seasons to come?

Lauretta Roberts, CEO, Co-founder and Editor-in-Chief.


Free NewsletterVISIT TheIndustry.beauty
cross