Editors' Top Reads: News from M&S, Kering, Radley, Paradaiza and more...
Here are some of this week’s news and features highlights handpicked by TheIndustry.fashion team.
Kering unveils new strategy as it focuses on reigniting desirability
Luxury conglomerate Kering (parent of Gucci, Saint Laurent and Balenciaga) has outlined a new strategy this week, centred on "True Luxury", which involves a renewed focus on "creativity, craftsmanship, cultural relevance and product excellence". This sort of comment from a luxury group amazes me somewhat, as it begs the obvious question "what were doing before if not that?" That's a rhetorical question, as I think we all know the answer.
The announcement came after the group posted a 14% drop in revenues in its most recent financial filings to €1.347 billion (£1.1 billion). Its flagship brand Gucci, now under the creative direction of Demna Gvasalia, formerly of Balenciaga, will be focused on "reigniting desirability" by offering a more coherent and higher quality collection of shoes, bags, ready-to-wear and jewellery. Again, what are we saying? That it was allowed it to get incoherent and lower quality? Probably yes. Much as I liked Alessandro Michele, its former creative chief, he did need editing and apparently was unprepared to do self-edit, so had to go. He was replaced by briefly by Sabato De Sarno, who toned things down dramatically, but he was ousted before his collections had really had a chance to hit stores.
Demna has a stronger design handwriting, there is no doubt, and I have enjoyed the new marketing campaigns. I just hope the quality part of the "True Luxury" equation is not forgotten (some of Demna's designs for Balenciaga were little more than merch). Also I really hope that prices aren't jacked up a ridiculous amount (yes, we are looking at you Chanel) to justify this new high level of quality, because that high level of quality should have been there in the first place.
Personally am more curious about Saint Laurent. Is it me or has it not produced a great handbag in years? Apparently it's enjoying a surge in demand for its Mombasa bag. but that was first introduced 25 years ago. Looking through its bag line on its website, there really is nothing that's exciting me, except for perhaps the new Hortense hobo, but am going to need to see that in the flesh before giving it the seal of approval.
Kering really does need to be prepared to invest in these brands in a root and branch way, and not just try to excite us by changing the design chief every now and again. Though to be fair, there is another part of its strategy called "Next Luxury", which seems to be about behind-the-scenes investment, so there's hope, I guess.
Lauretta Roberts, Co-founder, CEO & Editor-in-Chief.
M&S unveils revamped Sparks loyalty programme
It’s no secret to anyone who knows me just how much I rate M&S. From food to fashion, I think the retail giant is absolutely killing it. However, if you’d asked me up until recently what I thought could be improved (and honestly, there isn’t much), I probably would’ve pointed to the Sparks card. Like many people, I viewed it as an underwhelming platform with a couple of useful discounts. Well, that’s changed...
The Sparks programme has been relaunched - and this time it’s introducing something people have been asking for: monetary rewards. At the heart of the update is a new digital Sparks wallet, which allows customers to earn rewards in real monetary value. These can be used across the full Marks & Spencer range, including food, fashion, home and beauty, and spent whenever you like - whether that’s on everyday essentials or saved for something special like Christmas.
Alongside this, M&S has introduced a redesigned Sparks hub within its app, bringing all personalised offers into one place. These deals are tailored not only to past purchases, but also to customer preferences - so the offers feel more relevant each time you open the app.
M&S describes this as just the first step in an ongoing evolution of the Sparks programme, hinting at further developments to come.
Customer retention and loyalty are increasingly critical in today’s highly competitive retail landscape, and I believe this could be a game-changer for M&S, which already holds a significant share of the market. As if I needed any more encouragement to visit in store, I’m off to try the new loyalty programme for myself...
To find out more, read our coverage here.
Sophie Smith, News Editor & Senior Writer.
The Eric Musgrave Interview: Paul Mullen of Paradaiza on his move from multi-brand retail to the launch of his own brand
It was fascinating to read Eric Musgrave’s interview with former buyer and partner at Xile, Paul Mullen, this week. It’s a real story of the ins and outs of the industry, and one of survival and reinvention.
Mullen was at Xile, Edinburgh’s once-renowned multi-brand menswear mecca, during the glory years, having started there as a part-timer in the early ’90s, before going full-time, becoming assistant manager, then manager, then buyer and partner with founder Pat O’Flaherty (who sadly died of cancer in 2018, aged 71) and David Weeks - both legends of the menswear game in their own right.
In fact, Mullen ended up staying at Xile for 30 years, helping it grow into an independent mini-chain with eight stores, and open five franchise stores with then-hot Dutch denim brand G-Star, as well as one with Italian jeans brand Replay.
Mullen tells how it all imploded, including going into pre-pack administration in 2016 - and immediately being picked up by JD Sports, then under the guidance of chairman Peter Cowgill.
Mullen and Weeks continued to run Xile as joint MDs with mainly arm’s-length involvement from JD for six years. However, in December 2022, following the ousting of Cowgill, new JD CEO Régis Schultz surprised the sector by selling almost all the group’s fashion interests to Frasers Group.
By April 2023, Mullen, Weeks and virtually their entire team of 27 people were paid off with the statutory redundancy settlement. Xile was finished and Mullen’s 30-year career there hit the buffers.
However, he then set up shop under the name Paradaiza (the name is explained in the interview) on his own in August 2023 in the Stockbridge area of Edinburgh, making his own gear - much of which is made in Scotland. He also now counts the likes of Kestin Hare as a neighbour.
This is a story of someone who has lived and breathed the menswear business and, rather than being on the scrapheap following Xile’s demise, is loving life more than ever playing by his own rules - even with plenty of old Xile customers following, supporting, and, most important of all, buying from him. The gear looks great too.
Tom Bottomley, Contributing Editor.
The Interview: Co-founder Abhi Arora on building second-hand wholesale marketplace Fleek
The resale fashion industry is booming, and it is a truly fascinating time to be watching this sector grow and develop. While everyone will be familiar with some of the key players in the space - from marketplaces such as Vinted to vintage stores – I was intrigued to discover that there is a lot of innovation happening in this space behind the scenes. This is something I explore in my recent interview with Abhi Arora, co-founder of the B2B marketplace Fleek, which has been purpose-built for vintage and second-hand wholesale clothing.
I am familiar with how precarious it can be for charity shops, for example, to secure good-quality stock (as I volunteered for one during my time at university). I had never considered, however, how difficult it might be for established vintage or second-hand stores or sellers to do the same. After peeking behind the curtains of this business, Arora found the process to be laborious, time-intensive and mostly analogue. With his background in the start-up and technology scene, and alongside his Silicon Valley veteran co-founder Sanket Agarwal, he embarked on creating a wholesale marketplace that can help support the growth of resale sellers.
We also spoke about how the co-founders have capitalised on their tech background to integrate video-enabled live shopping and other technology into the platform, how it tackles common challenges in the business such as stock quality and authenticity, and its ambitious plans for the future.
Camilla Rydzek, Senior News & Features Writer.
NEXT eyes acquisition of British handbag brand Radley
Radley has been undergoing a transformation of late. Until recently best known for its cutesy bags with Scottie dog motifs, it now offers a range of chic, contemporary and functional bag for the modern woman (no matter her age). Its stated aim has been to produce the best possible quality bags for £299 (or less for many styles). A new creative director, Fernando Soriano Iglesias (formerly of Loewe and Caroline Herrera) was brought in to execute the new vision, and, while he's made huge strides already, he's only just getting started.
It would be a crying shame, therefore, if he's halted in his tracks by a possible sale to NEXT. Obviously we don't know yet whether Radley investor Freshstream will sell the brand to the highly acquisitive high street giant, but it is said to be one of a few potential suitors circling. One of the others is investor Gordon Brothers, which in common with NEXT, tends only to be interested in IP and other more intangible assets, rather than, say, actual people or physical retail stores.
NEXT's most recent buys include FatFace, Joules, Cath Kidston and Seraphine, along with premium footwear retailer Russell & Bromley, while Gordon Brothers most recently acquired LK Bennett; it is currently in the process of winding down its stores. Both of these buyers are great businesses, who know what they are doing and know how to maximise the value of a brand while minimising operating costs. A sale to either is not necessarily a disaster, and there is no saying a deal will come to pass at all.
Whatever the outcome though, it would just be nice to see the new vision for Radley be given a chance to come to life before further upheaval, and it would be lovely to think the British high street could provide a platform to outstanding creative talent. The thought of another design-by-numbers, licensed brand is a little depressing NGL.
Lauretta Roberts, Co-founder, CEO and Editor-in-Chief.
