Clothes shop
Introduction
So you've decided you want to run a clothes shop. Maybe you've had a lifelong interest in fashion, or perhaps you've been working in someone else's shop for a while and feel the time is right to go it alone. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
The clothing sector has seen changes in recent years as consumer interest in branded fashion labels has increased. This has led to many retailers changing the nature of their businesses by specialising in a certain niche area (men's casual wear, for example) to take advantage of this change in attitude.
The appearance of the retail outlet has become increasingly important, and retailers have generally brightened and modernised their shops to attract customers. Many of the clothing chains refurbish their premises at regular intervals to project a stylish and up-to-date image.
Many non-specialist retailers, such as supermarkets, now target the clothes retailing sector, intensifying competition for small independent clothes shops.
The sector has also seen:
- an increase in imports from countries where clothes are cheaper to manufacture
- saturation of the market, with the volume of clothes for sale beginning to exceed consumer demand
- consumer resistance to higher prices - clothing prices have not kept up with inflation
- the launch of e-commerce websites by many clothing stores as an alternative to - or to sit alongside - their mail order catalogue shopping
Recent years have seen clothes prices fall and fall. Shoppers have got used to £5 jeans, other 'everyday basics' but also budget 'throwaway fashion' items. Prices continued to fall during the late 2000s as the economic downturn forced many clothing retailers to discount heavily. Even retailers not traditionally associated with low prices now offer budget ranges. For example, in 2011 the Marks and Spencer chain was selling several men's formal suits for under £60. Overall sales of clothing fell during this period as consumers cut back on non-essential spending, although many value clothing retailers reported surprisingly good performance.
The huge growth of the internet has seen a revolution in the way we buy many different things, including clothes. Many established High Street retailers have their own e-commerce websites, and clothes are also sold by other online retail specialists such as Asos and M and M Direct. eBay now has many thousands of full and part time professional traders selling everything under the sun - including clothes. The rise of e-commerce has made the clothing industry even more competitive, particularly as supermarket giants like Tesco have started selling clothes online. Most experts agree that although the internet presents an opportunity to retailers who embrace it, it's a real threat to the traditional High Street shop. It's forecast that the value of online clothing sales will treble in the next ten years.
You will have to decide whether:
- demand will be high enough in your area to support your proposed business
- you will be able to compete against the other shops selling clothing in your area
- whether your business will be able to withstand any downturn in the economy
1.1 Keeping up to date with the clothing retailing sector
Joining a trade association is an excellent way of staying up to date with developments in the industry. Trade associations that represent the clothing industry include:
