"Lack of competitiveness" to blame for Missguided failure - analyst
Lots of reasons have been put forward for Missguided’s failure with some saying that it signals the demise of fast fashion. But an analyst said the real reason was more straightforward and a common problem.
Darcey Jupp, Apparel Analyst at GlobalData, said that the key factor was a “lack of competitiveness”.
“While media reports have linked Missguided’s demise to increased sustainability issues, it is clear from the continued growth of its rivals that its failure is down to its own lack of competitiveness rather than sudden fall in demand for fast fashion”, she said.
She added that it failed to compete effectively with Shein and Boohoo and said: “While many UK pureplays have struggled to continue their pandemic momentum in 2021 as in-person shopping returned, Missguided has slipped further than most, with its lack of high-profile celebrity collaborations and uncompetitive pricing contributing to the brand losing the lucrative attention of young shoppers in the UK fast fashion market.”
She also blamed the “failed venture into physical retail… as the brand opened expensive and uninspiring stores that were unable to maintain footfall, leading to their subsequent closures”.
The analyst believes that the launch of concessions in some Asda stores “had the potential to be successful, [but] was evidently not enough to rescue the struggling brand”. Clearly a case of too little, too late.
Missguided fell into administration on Monday after it failed to find a last-minute buyer and an expected pre-pack deal with Boohoo Group didn't materialise. But it’s been suggested that Boohoo is still interested in possibly buying the brand.
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