This week Ted Baker revealed stronger than expected sales growth as retail sales leaped 15.8%.
This week Ted Baker revealed stronger than expected sales growth.
The retailer reported a 17.9% increase in group revenues in the 19 weeks to June 7 and retail sales jumped 15.8% – above the 15% forecast by analysts.
The retailer cited its expansion into markets such as Egypt and Saudi Arabia as factors in fuelling its success, as well as new openings in locations such as Paris and Tokyo.
Ted Baker now operates in 30 countries and retail square footage grew 9.5% in the period.
However, many have struggled to understand why Ted Baker outdoes its competition.
The brand sells affordable luxury – its suits cost between £300 and £500. Yet it is often the case that retailers which appeal to this ‘middle’ market lose their way and their identity, unable to appeal both to those after high street fashion or those looking for high-end luxury goods.
So what can other retailers learn from Ted Baker’s recent performance? The answer lies in any good retailer’s success – it is about doing the simple things well.
Ted Baker understands its customers and doesn’t deviate too far away from what they want. Its products are right on trend with its customers’ tastes.
The retailer has been able to capitalise on ‘smart fashion’ – an area which has experienced strong sales growth as young men seek out a smarter look without perhaps quite being able to afford the high-end luxury goods.
In addition, this is a company that knows its identity, with its quirky personality incorporated into every aspect of the brand from marketing to product design.
Retailers should also follow Ted Baker’s lead in the way it treats its employees.
This retailer constantly invests in its staff, which ultimately lends itself to creating a great workforce that is 100% behind the brand and motivated to sell its products.
Indeed, many of Ted Baker’s team have been there since the beginning and some are even family members of the founder - Ray Kelvin. Mr Kelvin often claims that the success of his business is down to his experienced team.
So, given this retailer’s strong position and product offering with its consumers as well as its highly motivated team it is not that surprising that Ted Baker has been a great British success story.
Ted Baker’s success should remind others that while the customer comes first, without a strong team behind the brand long-term success will be limited.
- Dan Coen, Director, Zolfo Cooper