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What happened to ‘this is going to explode on Monday’??
Probably a good job JD has been propping up the sp with his purchases. I’m sure the Chairman is thrilled with the 150,000 he bought at £2.46….
Something doesn’t feel right.
Seems like Sunak has upped his income tax cut game in response to his trailing of Truss. Is there also a danger that at this point in the ‘leadership’ contest, Sunak or Truss start throwing competing bids on how much they would tax BP, in order to win votes for their campaign ?
It's an improvement from the bottom, yes. Longer term trend remains down, and like I said, this is in the face of the huge social media and ad campaigns launched in the same period.
I don't mind being wrong, it's my opinion. So far, though, the state of the business isn't proving it though, is it?
How is Oxford Street fairing? Have you been?
My figures are correct. It is prudent when looking at a recovery play like this to see the longer term trend. Last year and the pandemic is an anomaly, and anyone gauging against this is using strange optics to assess the overall movement of the business. It's like Biden saying he's created more jobs in his first year than another President. It's true, but its only because of all the losses attributable to the pandemic, so its artificial in many respects. Its a much better metric to view against FY20 unless there is a specific to SDRY that alters that view. There isn't. Revenue continues to decline. Margins are improved by not discounting...who knew???
I can talk about store concepts. What do you want. A reiteration of my position? How is Oxford Street doing?
I look at how you take a 'personal' position to the fact that revenue is down 11.7% v fy20. So childish. Are these numbers incorrect? Fewer customers, lower revenue than before. I still say there's hardly any customers in stores. Oxford Street store is not doing as well as hoped. Seems the market isn't keen right now.
To be fair, Hawi, I told you they were terrible long ago. I don't need to try and tell you, I know you are beyond sensible discourse. The revenue has gone down... Lets have your 'insights' as to why business is still declining.
Hi Sheltie. I think that article is what is known as a ‘puff piece’. Essentially JD giving access to himself (for promotion, obviously), and spoon feeding the info and ‘perspective’ he has to give the hard hitting Daily Fail and easy bit of print.
Hawi. Thanks for your reply. I am actually very familiar with this area of retailing. Sure, we can assume the new platform will be better, otherwise, why bother? My question was really whether you had any thoughts/knowledge/info on the expected impact of the new platform in revenue terms. As we know, superdry have been notoriously late to the whole social media party. Platforms that allow customers to link directly to product from social media are well established. It’s interesting to see JD refer to having no social media influencers 18 months ago and now having over 1500. I wonder which person suddenly has all this experience and is picking the right influences. There are many brands kicking around that are doing a lot better than super dry that don’t use social media influences. The best scenario is to be a brand that sells itself rather than having to rely on this rather debatable group of ‘promoters’. I personally feel in the world of fashion that most people know whether a brand is doing well or not without the need to have somebody like Zara Larsson or Brooklyn Beckham and tell him that they should be wearing it. The most impactful advertising is that of the celebrities or whoever actually wearing the product because they want to not because they’re being paid to. Again, I would refer you to my list of 200 million Instagram followers that SuperDrive signed up and also the fact that the sales are still in decline.
In the omni channel/multichannel moniker is something in the eye of the beholder. Most companies these days are operating on several channels, the extent to which the online and off-line are combined is simply a matter of integration but doesn’t shift the meaning for me. In fact, Drapers the fashion industry magazine recently held their Digital Festival conference. One of the panel discussions was literally ‘what does omnichannel retailing mean today?’ None of the 4 panellists gave the same answer. Superdry have a large distribution centre. Are all online sales currently taken from the DC and the DC alone, or is there fulfilment by way of pick pack and ship from the retail stores? Bottom line is do you think the online platform is gonna make sufficient difference to hold the decline in sales?
Hi. Thanks Sheltie and MSN.
I look forward to hearing you observations. I have seen the new flagship. It’s got a lot of positives. As usual, and I like this about JD, he knows how to spend on the fitting out. All top notch, and again, as is normal for Sdry, the range of fixtures and fittings are superb quality.
I was pleased to see that the windows had very branding on display (we could debate why on another day). The other side of this coin exists….the product in the windows was fairly plain, and standard in offering. There’s the rub. What makes it different to other brands and is it appealing enough for the brands’ ‘avoiders’ to go in and see and perhaps buy? Time will tell.
Unusual for Sdry stores, there’s a ‘living wall’ of mossy plants, and some other ‘plant based dried arrangement’ type display. I like it, in as much as it’s a nice thing per se, but not sure I get the connection. It feels like he’s going for a ‘and other stories’ vibe, or maybe like a ‘Free People’. I thought he was targeting a younger customer, what with Brooklyn et al. That’s why I don’t quite see what that’s about.
As far as I can ascertain, the Nike installation is merely a case of ‘reselling’. Buying old Nike T-shirts and sneakers and having them for sale in your shop it’s not quite the same (or at all) to a ‘collaboration’ with Nike. I have a cupboard full of Nike sneakers at home, that doesn’t mean I’m collaborating with Nike. I am not 100% on this, and happy to be pointed towards the correct information if it exists. It seems clear to me, and I alluded to this in a far distant post, that Dunkerton is desperate to have a tie in with somebody like Nike in order to save his brand. The creative director is ex Nike the new chairman is ex Nike and the CEO is ex Nike. You can’t blame him for trying, but I would be astonished to see a superdry Nike collaboration. But it’s okay to dream.
Sheltie. I won hundred percent agree with you. Superdry stars have always suffered from having far far too much stock. You’re right, it is an oppressive experience walking into superdry stores because the stock seems to come at you from every direction. This is all down to JD. He is known for his ‘enthusiasm’ for buying, and that’s why there’s always too much stock. Now, you expect to see stock like an avalanche in TJ Max, or Sports Direct, because you’re looking for a bargain. Anywhere else, it destroys any perception of ‘premium’. There’s still too much SDRY in your face, it’s like machine gun fire from some angles.
It’s a good location. It will be an expensive 32,000 sqft. Great time of year to be open. It should do ok initially, but let’s see longer term.
It wasn’t too busy, no queue outside for sure…
Hawk. Still waiting for a bit more meat re your thoughts on the online platform. I also gave you around 200 million Instagram followers, and pointed out the continued decline in sales. I thought you might come back to me on that point.
Actually, it just occurred to me that there is some contradiction to speak of.
JD has his own private jet that he uses extensively to have himself and his Mrs flown on numerous holidays. Speaking of his Mrs, she owns more supercars than I have fingers. I think JD has a Range Rover, so not a supercar, more of a 'old fashioned' gas guzzler. Does he not also boast of owning the 'largest private outdoor swimming pool in the UK'? Maybe its heated by burning unsold vegan trainers.
Oh, and Brooklyn Beckham. Was he not recently seen blasting around the desert in a BMW Z4? A two seater sports car powered by fossil fuel. I do believe he was being paid to promote it.
Now, there's some contradiction for you.
Hawi. I was invested in SDRY at flotation. I have been in, and out, at numerous occasions. I am not in at the moment. I am not short (never have been, never will). It's not a binary choice here of you're either invested or you must leave. I watch this company with great interest and i feel i have something to say. If that is a problem for you, then i suggest the problem lies with you.
You say JD 'relies' on influencers. Actually, JD historically has never 'relied' on influencers. This is a new approach that has rather been forced upon him by the recent destruction and fall into irrelevance of his brand. It doesn't take too much effort to find the many industry media references to this point, with the overall opinion being that SDRY have been 'late to the game' in this regard. The question is whether they will do it well, whether it will connect authentically with the intended consumer they are targeting, or whether, in fact, 'ignorant' 20 somethings will see it as a desperate and lazy attempt to buy credibility. There's not much imagination involved in throwing money at pop stars, and it might backfire.
You again reference the online platform. You again give absolutely no meat to your opinion on it. Whether I like the platform or not is not the point. I asked you for some substance on it as you had referred to it in two separate posts. Tell me what is so good about it vis a vis SDRY specifically, and what level of follow through in terms of sales do you envisage?
Vegan trainers. Plenty of 'real' sneaker brands sell vegan options. Nike, Adidas...etc. Cutting edge companies in the sneaker market. SDRY vegan trainers are neither cutting edge technology from the vegan perspective, nor are they cutting edge in the role of being a sneaker per se. Most importantly, they are as ugly as sin, and robustly out of date in styling. Selling a vegan trainer does not of itself, prevent any brand being old fashioned. In any event, I never said the brand was old fashioned, I said the sneakers had on old look about them. Quite different. So no, I don't think I did make contradictory statements. I notice the vegan trainers are still available in all styles, in all sizes.
On marketing. I referenced the 'Hero' varsity a while back. SDRY produced a varsity jacket that retailed at $1200 (plus tax). They spent who knows how much on glossy adverts in magazines such as Vogue. Now, I don't really get why they bothered with such an outstandingly out of kilter with their brand position, super pricey option, to promote at huge cost with celeb (if you will) model and expensive advertising campaign....only to see it not sell, and then reduce it in price by 50%. Abject failure, and suggests a muddled marketing approach at best.
So how much did those celebs cost? Are the sales, as per the company accounts, still in decline?