SWOT

SWOT RESEARCH

STRENGTHS

• NL GROUP WEBSITE - https://www.newlookgroup.com/who-are-we

- NL began in 1969 so it is a reputable company and is well known 

- it has 519 stores in the UK and Ireland which increases their range of customers and makes them more well known (more people will be likely to have walked past one of their stores and seen it)

- their website ships to 66 countries which further increases their variety of customers and sales 

- claim to put customers at heart of everything they do 

- 800 products are uploaded to their website every week; constant update of stock which gives more variety for customers to choose from (and more of a chance customers will like the products), this also helps them keep up with online competitors 

- "react quickly to trends"

- cater for a wide range of people; women, men, maternity, tall, plus size and teens, this increases their brand diversity and variety of products on offer 

- have a wide range of sizes

- they have sections on third party e-commerce sites which increases their online brand and variety of customers and makes them more well known (as someone may find the brand for the first time on Asos for example)

- "constantly looking for new ways to improve our services"

- offer; home delivery, order in store and click and collect (variety of ways you can purchase and access their products) 

- brand values; keep it simple, be brave, think customer, act with pace and take responsibility 

- claim they offer; latest trends, celeb looks, fashion forward pieces and wardrobe essentials 

• RATED HIGHLY ETHICAL BY - https://thegoodshoppingguide.com/subject/ethical-fashion-retailers/

- the good shopping guide rated NL highly ethical in all areas expect for organic (environment) and ethical accredidation

•  INVESTORS REPORT (BRAIT) - https://brait.investoreports.com/investments/new-look/ 

- claims NL is the number 1 UK womenswear retailer for ages 18-34, a testament to its continued brand strength and loyalty 

- NL provides an exciting in-store shopping experience 

- Following a difficult FY2018 and first half of FY2019, significant progress has been made to deliver financial and operational stability that will be reflected in in the second half of FY19 and beyond

- NL puts customers at the heart of everything they do 

- in 2018 profits increased on dresses (83%), going out (34%), tops and bottoms (29%)

- 2018; store conversion rate increased 24%

• NL HAVE HAD VARIOUS CELEBRITY COLLABORATIONS IN THE PAST - http://celebrityclothingline.com/company/new-look/

- Pixie Geldof; 2008

- Lily Allen; 2007

- Kelly Brook; 2007

- Rochelle Humes; now (https://www.newlook.com/uk/womens/the-rochelle-edit/c/uk-collections-womens-the-rochelle-edit)

https://www.newlook.com/uk/rochelle-humes?searchTerm=rochelle%20&searchType=keyword-redirect

• NL ARE AN OFFICIAL PARTNER OF LONDON FASHION WEEK

https://www.newlook.com/uk/London-fashion-week-hub

https://uk.fashionnetwork.com/news/new-look-official-partner-of-london-fashion-week,861147.html

- NL was the official partner of LFW in 2017

- NL sponsored LFW in efforts to boost its fashion credentials 

- “At New Look, we want to make the latest fashion accessible for everyone, which is why we are really excited to be embarking on such a prestigious partnership with the BFC and LFW. This iconic international fashion moment provides the perfect platform for us to offer our global audience style inspiration and demonstrate who we are as a brand – our personality, individuality, and dedication to self-expression – as we continue to elevate our fashion credentials,” said Anders Kristiansen, chief executive, New Look.

https://fashionunited.uk/news/fashion/london-fashion-week-partners-with-new-look-for-ss18/2017081725518

- The new partnership builds on the BFC’s ongoing strategy on ensuring London Fashion Week becomes more accessible to a wider audience. “Our partnership with New Look will take London Fashion Week to a fashion-savvy global audience, aligning with the British Fashion Council’s long term strategy of bringing our platforms closer to the consumer,” said Caroline Rush CBE, Chief Executive British Fashion Council. “New Look’s positioning of female empowerment and inclusiveness are brand objectives that we align with and we look forward to helping empower a younger generation through fashion.”

- "Our ‘London Fashion Week Edit’ will be a first look at the exciting product that our customers can expect to see going into the new season and we can’t wait to unveil it." In order to ensure consumers feel more involved during LFW, New Look will also be hosting a number of in-store events during the weekend at its flagship store on Oxford Street, offering them an insider's look at the bi-annual fashion event. New Look will also host events at its stores in Manchester and Birmingham the following week together with the BFC, bringing LFW outside of the capital city

• MINTEL ACADEMIC - https://academic.mintel.com/display/982670/?highlight#hit1

- it was reported they womenswear improved in profitability (and is forecast to group a further 3.9% in 2019)

- the brand is regaining its historical value-led reputation by revising its prices, making them cheaper in order to appeal to their loyal target market 

- has invested in the functionality of its website to enhance customer experience and compete with online-competitors, launched an 'order in-store, collect in-store' function in 2019 and a photo search functionality on website, this is also helping to increase physical store footfall

- 2019 sales through third party e-commerce websites rose by 11% and £8m to £80.9m, which is a low cost route into new territories without the cost of opening up more stores 

- September 2019 vegan range; Mintel’s Fashion & Sustainability – UK, August 2019 Report, when it comes to issues that people take into consideration before buying new fashion items, animal welfare came top with 42% saying that this is an area which is important to them

• NL WAS THE WINNER OF THE CXA CUSTOMER CENTRIC CULTURE AWARD IN 2016 - https://cxa.co.uk/blog/new-look-and-their--new-Initiative-service-basics

• NL FOCUSES ON PROFITABLE SALES - https://internetretailing.net/strategy-and-innovation/strategy-and-innovation/new-look-focuses-on-profitable-sales-from-combination-of-online-and-fewer-stores-19822

- June 2019 = recent article 

- NL said its stores and online store are working together better than ever 

- has returned to operating profit since closing stores 

- chairman Alistair McGeorge said the retailer had achieved a “remarkable amount” over the year, improving profitability, recovering product appeal, and delivering on cost savings and financial restructuring. “Our ecommerce and store businesses are now working together better than ever, and we are starting to see the benefits of improved speed to market,” he said

- physical stores are still at the heart of the NL experience 

- this year footfall benefitted from multichannel services e.g click and collect 

- this year customer conversion rate improved in-store (3.5%) and online (5.5%)and underlying operating profit had improved by 78.2% to £21.2m, from £11.9m last time

- pricing has been aligned across channels and this has improved profits 

- during the year NL saved costs of more than £80m e.g costs from over-rented stores 

WEAKNESSES

• MINTEL ACADEMIC - https://academic.mintel.com/display/982670/?highlight#hit1

- NL lost connection with its core target market by chasing a younger and more fashion forward one, which resulted in them raising their prices and compromising its reputation for value for money 

- its march 2019 sales were down 3.8% than the previous year (to £1.2b)

- NL plans to shut menswear sections in stores to make room for a larger womenswear section; this may lose and disappoint male customers 

- they struggle with their international presence claiming it was unprofitable; shut stores in china, France and Belgium 

- their total revenue declined 3.8% to £1239m due to reduction in stores and challenging market conditions 

- their e-commerce sales were down 7.3% to £172.3m which was a result of their decision to focus on profitable and move away from discounting to the commerce offering the same as in-store (customers pay the same price wherever they shop)

- 102 stores have had to be closed as part to their CVA to prevent going into liquidation 

• MARKETLINE; WHY NL HAS FALED - https://advantage-marketline-com.hallam.idm.oclc.org/Analysis/ViewasPDF/new-look-another-victim-of-the-uks-troubled-high-street-61534

- the companies performance had detonated in recent years because of economic uncertainty and a fall in consumer confidence, this had led to their vast store closures 

- the brand has failed to respond well to the online shopping revolution and fast fashion paces

- in its 3rd quarter results it reported it was down 6.3% at £1b; resulting in large amounts of debt as a result of poor performance and high rental costs, so its come to a CVA (avoiding administration/ liquidation)

- online threats e.g boohoo and Asos are a huge threat to brick and mortar stores 

- NL's website had improved but its a case of too little too late, other competitors spotted the trend earlier and adapted quicker 

- NL is considered fast fashion but it falls short of its competitors, Primark avoids the challenge of high street by offering cheapest products and responding quicker to trends 

- the challenging environment of high street and rise of online shopping has led to an increasing pressure on high street chains 

• 'FAT TAX' - https://www.independent.co.uk/life-style/fashion/new-look-fat-tax-plus-size-clothing-range-high-street-fashion-a8350866.html

- 2018 NL was criticised for applying 'fat tax' onto their plus size clothes 

- items in the curve range cost ups to 30% more than the same item in the normal range 

- NL said it would look into the issue; " “We are in the process of reviewing the pricing structure of our Plus Size collection in a way which works best for our customers and our business."We are proud of the ranges we offer to our Plus Size customers and value all customers, no matter what their body shape or size is."

- for example the same pair of striped trousers cost £19.99 for sizes 6-16 but £24.99 for sizes 20-32 

- some claim its discrimination against larger people but others argue against this; it costs more to make the garments as more material is used 

• https://academic.mintel.com/display/959056/?highlight

- this graph reflects a prominent decrease in footfall for high street shops, reaching -9% in March 2018, which then picked up to 0% in April 2018u but fell again to -4% in November 2018

OPPPERTUNITIES

• INCREASING THEIR SUSTAINABILIY - https://i-sight.com/resources/importance-of-brand-ethics/

- 91% of consumers say that brand behaviour is an influential factor in their buying decisions 

- 74% of consumers would be more interested in knowing more about the behaviour of a company before buying their products 

- 60% say having an awareness of a companies ethics affects their decision making 

- 53% say that knowing a company donates to charity affects their decision 

• 5 OPPERTUNTIIES FOR GROWTH IN THE RETAIL SECTOR - https://www.instituteofcustomerservice.com/media-centre/customer-service-news/article/5-opportunities-for-growth-within-the-retail-sector

- better e-branding (social media), offers speed and convenience, NL would benefit from this

- high-street investment, NL did this and it didn't work! they opened too many stores which led to them being in a great deal of debt 

- data handling e.g tools that give shop workers to have a real time overview of what's available in the store/ stock room and can reserve this immediately, allows for more targeted advertising

- seamless service (this may be challenging for NL due to its widespread scale, it may be difficult to execute exactly the same service in every single store as there are so many with so many different individuals that work there, as well as different types of people)

- cultural change (important when competing with other brands)

• EASY RECOMMENDATIONS FOR RETAILERS TO INCREASE PROFITS - https://www.thebalancesmb.com/ways-to-better-your-business-2890540

- reduce shrinkage; average shrink % in the retail industry is 2% of sales 

- increase sales opportunities; e.g up-selling to a customer or planning an expansion into a multi channel environment 

- improve customer service; workers should be friendly and breads should learn how to create customer loyalty 

- add new products or product lines; adding products into collections (where there is a demand for them) is new and exciting for customers 

- buy from vendors with the best value; the vendor with the lowest price isn't always the best, consider shipping cost, terms of sale etc 

- increase marketing

- lower expenses; learn where to cut operating expenses

- get out of the store; attend trade shows etc 

- add one new time or money saving piece of technology; invest 

- provide training for staff  

• https://academic.mintel.com/display/959048/?highlight#hit1

- this graph suggests several opportunities that customers want, that consequently New Look could focus on in order to improve 
- for example; making their changing rooms more spacious and making their online size guides more simple (such as including specific measurements of the products as well and a suggestion of whether its true to size etc)

THREATS

• https://www.moneywise.co.uk/opinion/graham-waddell/biggest-threat-future-british-high-street

- the biggest threat to high street shops is the internet 

- 1 in 5 stores on the high street have shut since 2012 

- online spending is 18% of all retailing spending in the Uk according to the Office For national Statistics (doubled what it was 5 years ago)

- too much attention has been paid to the plight of shops and not enough to the wider economic factors that contribute to a healthy city centre 

- the challenge is no longer keeping the shops alive but keeping th town centres alive 

• https://businessadvice.co.uk/high-streets-initiative/britains-biggest-high-street-threats/

- e-commerce (online) 

- business rates increasing 

- local parking measures; e.g. trying to tackle congestion or air pollution, will encourage consumers to shop elsewear 

- customer experience; customers are now demanding more. 57% of people prefer bricks and mortar stores to provide a more comprehensive consumer offering with access to social spaces or brand experiences e.g smarter fitting rooms 

- economic uncertainty; Brexit, lowering value of the pound 

• https://www.essentialretail.com/analysis/declining-high-street-retail/ 

- decline of high street retail should not be seen as a threat but an opportunity for towns and cities to reinvent themselves 

- there's too much retail space; if this was refurbished into other things people would be encouraged to go into towns more and thus shop in the shops also 

• https://www.roydswithyking.com/uk-retailers-reveal-the-biggest-threats-and-opportunities-for-their-future/

- online shopping

- 61% of retailers say that increasing rent and business rates are the biggest threat to the high street 

- 19% say that reduced footfall is ^

- 11% say that pressure to discount is ^

- 8% say that reduced consumer confidence is ^

- 42% of retailers view online as primarily a threat and backed calls for new sales tax on internet giants to level the playing field 

- the 'future edge'; brands that introduce more sustainable aspects into their branding to appeal to future conscious consumers 

• https://academic.mintel.com/display/959056/?highlight

- £1 in every £5 spent by British consumers is spent online

- this is rising to £1 in every £4 in the UK clothing market