With a profit slump announcement still smarting for New Look, the fast fashion retailer can take heart from out-performing pureplayers when it comes to online satisfaction.
New Look is aiming to sharpen its strategy after recently announcing that profits dropped by 60.3% to £12.1m for the first quarter of 2017.
Agile online retailers such as Boohoo and Asos are making the young, fast fashion sector a fiercely competitive place to play, meaning the established bricks-and-mortar cohort need to adapt, and fast.
However the data reveals there are areas New Look can leverage to strengthen its market position.
New Look is competitive against pure players that cater to their young target demographic.
Its online performance is strong, with consumers showing a preference for shopping online at New Look over Boohoo.
Of all 130 brands tracked, New Look over-indexed on all online satisfaction attributes driven by products meeting customer expectations and good website navigation. Brand preference is second only to Primark in the womenswear category, buoyed by young consumers aged 16 to 24.
But New Look executives may want to consider the brand handwriting as it currently lags behind its competitors in being considered ‘distinctive’. In the current challenging and discount-heavy retail market, creating differentiation will be pivotal for the brand’s long term survival.
WGSN’s Barometer is used to track public perception of retailers. It interviews 350 consumers every day, yielding 120,000 interviews a year, composed of more than 100 questions such as:
- Brand preference: Of the retailers you would consider, which would you describe as your favourite?
- Online satisfaction: Thinking about some of the retailers you have visited online in the last month, how would you rate your level of satisfaction with the retailer overall?
Commentary supplied for Retail Week by WGSN Barometer analysts. For more information, visit wgsn.com