Lidl’s move into the fashion sector has grabbed headlines, but how will the discounter fit into the greater fashion retail market?

Lidl grabbed plenty of headlines when it unveiled a women’s clothing line, but it is important to contextualise the market it is entering.

Supermarket fashion is a huge part of the wider fashion industry, accounting for one in every four items bought and one in every £10 spent. Within this, supermarkets perform particularly well in certain sectors: a third of all children’s fashion is bought at a supermarket, and basics such as underwear and socks sell well. 

‘Must have’ fashion is less of a focus, although the big grocers have dramatically improved the quality and range of their clothes in recent years, and this is reflected in average prices rising by more than 20% in the past five years. But the average fashion item sold in a supermarket costs just £5, half the market average.

The supermarket sector as a whole will have to work harder if it wants to take more market share from the specialist fashion retailers. This is because, first, the vast majority of fashion shopping in supermarkets takes place alongside a food shop. Consumers don’t typically visit a supermarket just to buy clothing.

Second, supermarkets are no longer stealing a significant amount of sales from the high street. Over two-thirds of people buy a fashion item in supermarkets each year, but this figure has not changed in the past five years.

In other words, people aren’t leaving fashion specialists to shop for their clothes in the supermarkets. 

Lidl has gained lots of attention, but longer term it should tailor its offer to fit the supermarket fashion sector. Basics and back-to-school wear should form the basis of its future strategy. When Aldi stocked a full uniform last year for just four pounds, it took 4.2% of all uniform sales. 

Faux leather jackets may grab headlines, but they are unlikely to appeal to the average supermarket fashion shopper – aged 46 – who is looking for basic value clothing.

  • Ian Mitchell is head of fashion at Kantar Worldpanel

Analysis: Supermarkets fight it out on the fashion front