Little more than a decade ago, many experts questioned whether consumers would be willing to put a pair of jeans in their shopping trolley alongside their baked beans. Yet supermarket fashion is now well established: Asda has George, Sainsbury's has Tu and Tesco has F&F.
George, the range created for Asda in 1990 and now a global brand for the supermarket's owner, Wal-Mart, is up there with Primark and Marks & Spencer, consistently jostling for the top spot as the biggest UK clothing retailer by volume.
However, Morrisons has been notable for its absence from the fashion line-up - until now. Since acquiring UK chain Safeway in 2004, Morrisons has, understandably, prioritised its shift from Yorkshire-based regional chain to national player. It has positioned itself as a value-for-money, fresh-food retailer, focusing on enticing shoppers with its 'Market Street' format and promoting its in-store bakery, butchers and fishmongers as its USP.
Last week, however, rumours began to circulate that fashion retail veteran George Davies - founder of Next, creator of Asda's George range and the man behind the M&S Per Una offering - would be drafted in to steer Morrisons' fashion debut. Clothing could be in up to 100 stores by the autumn.
Careful positioning
Although neither Morrisons nor Davies would comment on the story, a move into fashion is a logical and attractive step, as it offers the supermarket far higher margins than grocery.
One fashion marketing director says Morrisons has made 'huge strides', and clothing marks the next stage of growth. However, she warns: 'It needs to make sure that whatever clothing it introduces, the range fits its locally sourced brand position. If clothing doesn't complement its food proposition, then it would be at odds.'
The marketer believes it will be essential for Morrisons to create a fashion sub-brand. 'It would be weird to have the Morrisons logo as the label, but it could use something like "Brought to you by Morrisons", if not separate branding altogether,' she says. 'Quality and fashionability are essential; Tesco has achieved this very well. Consumers now expect supermarkets to do fashion, but they won't buy clothing just because it's in front of them. Brand trust will play an important part.'
Bringing Davies in will give the supermarket instant kudos, argues one expert in the sector, whose agency holds a rival retail account. 'Morrisons will have to make a leap in (fashion) credibility terms, because it is a little downmarket, but Davies offers a short cut,' he explains. 'His involvement will create a buzz with consumers. He is not just an industry name: housewives know him as a designer who creates exciting and accessible clothes for all women.'
Davies' reputation aside, Morrisons must still identify a gap in the market, warns consultant Adam Chinn, who has worked with Asda and Matalan and is a former head of marketing at Johnsons Dry Cleaners.
'Davies is like a demi-god in fashion retailing,' he says. 'However, the other supermarkets already cover off every angle so well, from budget to more premium F&F ranges.'
The grocer must take account of several factors, adds Chinn, particularly the size and breadth of the launch range. 'The big considerations are where it will be located and what it will replace in store, as well as pricing,' he says. 'It will also be interesting to see whether it starts with a small, basic offer or goes straight in with a budget range of women's fashion, men's suits, schoolwear and denims.'
Low risk, high expectation
While Davies will give Morrisons an 'in' with the all-important fashion press, few expect the addition of a clothing range to prove much more than a box-ticking exercise.
'I don't think people will switch to Morrisons just because it now offers clothes, although there may be a slight upward blip,' says Jim Prior, chief executive of branding agency The Partners, who also founded fashion label Duck & Cover in 1996.
As long as Morrisons does not try to push too far upmarket, he believes it is a logical business move. 'It won't try to position itself as a style leader,' he says. 'It is simply taking advantage of the fact it already has millions of customers coming into its stores. This is low-risk for Morrisons.'
Nonetheless, from a standing start it will need to be quick to catch up and match the standards of rivals, which each have at least a decade of fashion retailing experience behind them, says Verdict Research consulting director Neil Saunders.
'When Asda and Tesco launched clothing there was no expectation,' he adds. 'Now, consumers expect much more. Morrisons must deliver from the off, which will be a huge task.'
FASHION RETAIL SALES BY VOLUME AND VALUE SHARE
Volume share % Value share %
2010* 2009** 2010* 2009**
Discounters 24.1 25.5 11.3 11.7
Supermarkets 22.3 20.6 9.4 8.6
Fashion multiples 17.5 18.1 28.1 28.5
General stores 14.5 14.2 13.5 13.2
Department stores 4.8 4.8 9.0 8.6
Sports shops 4.5 4.3 7.5 7.3
Home shopping 3.7 3.7 8.5 8.5
Internet 1.8 1.6 3.3 3.0
Clothing independents 1.7 2.2 3.6 4.7
Footwear multiples 1.5 1.6 4.0 4.1
*24 weeks to 26 Dec 2010 **24 weeks to 27 Dec 2009
Source: Kantar Worldpanelfashion