Following the news that Marks & Spencer has bought Jaeger out of administration:
Pippa Stephens, Retail Analyst at GlobalData, a leading data and analytics company, offers her view on the situation:
“Though M&S is not expected to retain any of Jaeger’s physical stores, the addition of the brand to its online offering will allow Jaeger to experience greater accessibility, while the overlap between M&S and Jaeger’s existing customer bases should make for a relatively seamless integration. However, since M&S has tended to lag behind on digitalisation, it may struggle to convince its older shoppers to browse Jaeger via its website, with many consumers instead preferring to shop online through retailers with more reliable and established platforms such as Next or John Lewis.
Jaeger’s premium price points and focus on formalwear are unlikely to resonate well with M&S’ shoppers in the current climate, since the COVID-19 pandemic has put a halt on all social events and economic uncertainty has caused many to trade down to midmarket and value players. Therefore, to make this acquisition a success, M&S must review Jaeger’s pricing architecture and make it more affordable, while creating more unique designs with sustainable fabrics will help customers to better justify their investments. Expansion of its casualwear offer will also help to boost relevance as consumers continue to spend more time at home in 2021, and it will need to display these ranges prominently on its homepage, in marketing communications and on social media to drive awareness.”