Apparel and Footwear Specialist Retailers in Israel

PROSPECTS

Rising operating costs, warmer weather affecting value growth of apparel and footwear specialist retailers

The apparel and footwear specialist retailers channel is already very competitive and now players face increasing operating costs, a result of both the minimum wage for staff and commercial rental rates continuing to rise. Larger retailers have been able to cope with these changes as they can better negotiate rental rates, but mid-sized and small players struggle.

Domestic channel continues to see growing competition from abroad

Domestic players in the apparel and footwear specialist retailers channel continue to face growing competition from international e-commerce retailers. The economies of scale enjoyed by international e-commerce retailers often allow them to offer lower prices than those offered local brick-and-mortar stores.

Local players seek growth by strengthening online presence, expanding brick-and-mortar stores

In recent years, local players in the apparel and footwear specialist retailers channel have faced many challenges as they have sought to achieve sustained value sales growth. Amongst the strongest challenges has been the rise of e-commerce and, in particular, the increasing number of international online retailers.

COMPETITIVE LANDSCAPE

Fox Wizel continues to lead channel in 2019

Fox Wizel Ltd continued to see value share growth in 2019 and it remains the leader in the apparel and footwear specialist retailers channel. In large part, the company’s continued growth is based on the wide range of popular apparel brands on offer for all ages.

Acquisitions, closures characterise apparel and footwear specialist retailers channel

In recent years, a multitude of forces have converged and exerted substantial financial pressure on players in the apparel and footwear specialist retailers channel. These forces include the emergence of the e-commerce channel and the wider access amongst consumers to the low prices of powerful international retailers; rising operating costs, such as rising commercial rental rates and rising staffing costs; and the generally more intense competition that has led to reduced prices.

More international players entering the channel, increasing pressure

International brands continue to enter the apparel and footwear specialist retailers channel. In 2018, for example, Poland-based brand Reserved was launched by H&O Fashion, and it immediately introduced very competitive prices.

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