Apparel and Footwear Specialist Retailers in France

PROSPECTS

Ongoing store closures as apparel and footwear e-commerce continues to perform well

Apparel and footwear specialist retailers continued on a declining growth path in 2019, which it experienced for much of the review period. Although the decline in current value sales was not as dramatic as it was in 2018, which was in part negatively impacted by above average temperatures during the summer months and the “Gilets Jaunes” (yellow jacket) movement which led to demonstrations against the rising cost of living due to the government’s tax reforms, the number of outlets also continued to gradually decline, a trend that is predicted to continue into the forecast period.

Retailers look to enhance consumer experience to attract higher footfall

With increasing pressure on apparel and footwear specialist retailers, players are looking to enhance the consumer’s in-store experience as way to encourage footfall, leading to the emergence of new concept stores. Gémo from Eram SA launched a new family concept store at the end of 2018, within an E Leclerc shopping centre, with the aim of benefitting from high footfall, in addition to updating its image from that of a suburban brand to an international one supported by an omnichannel strategy.

Increasing demand through second-hand market inspires specialist retailers to explore this avenue for potential sales

The second-hand market has also placed pressure on sales through apparel and specialist retailers in France, particularly for childrenswear in 2019 with this category recording a marginally higher decline in current value sales compared to menswear and womenswear. French parents can be quite price-sensitive when purchasing childrenswear due to the relatively short amount of time that these clothes are worn before they have been outgrown, leading to increasing sales through online marketplaces such as Le Bon Coin, and eBay, although Vinted has also gained in popularity over the review period as local consumers also increasingly searched for competitively-priced apparel and footwear for themselves.

COMPETITIVE LANDSCAPE

Highly fragmented competitive landscape led by struggling Vivarte

Apparel and footwear specialist retailers remained a highly fragmented competitive landscape in 2019, led by Vivarte SAS, which posted another year of declining current value sales as it continued to close a number of its stores under La Halle aux Chaussures, La Halle, Minelli, Besson and André in an attempt to improve its financial situation under the cloud of debt. This decision followed a period of restructuring for the retailer under its La Halle aux Chaussures and Maroquineries banners while it was forced to sell its Pataugas, Kookai and Merkal brands.

Levi Strauss & Co heavily invests in expansion in France

Foreign brands experienced mixed performances in France in 2019, with demand for mass market brands such as H&M and Zara waning towards the end of the review period leading to store closures, although this trend may also be linked to increasing traffic through their e-commerce sites which attract their target audience of younger consumers. On the other hand, Levi Strauss & Co Europe SCA witnessed the strongest performance in 2019, as the retailer further invested in one of its core but maturing markets in France, by opening an additional 74 stores in 2019.

Gémo Kids opens in busy Parisian shopping area

Despite the closure of a number of its main stores and the marginal decline experienced by childrenswear in France in 2019, Gémo has invested in the opening of a new store which focuses solely on children’s fashion (up to 12 years of age) under the banner Gémo Kids. It has chosen popular shopping area Rue de Rennes in Paris for its location (in the space previously used by another Eram banner Texto) for this new store, in an attempt to attract high footfall in the busy city centre.

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