Jaeger: The secret of success
By FashionUnited
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Behind every successful business, there is a successful investment plan and the evidence points to luxury brand Jaeger who announced this month an increase in profits after bucking the gloom of the economic environment to report a 12 per cent rise in trading ahead of last year.
Belinda Earl, Group Chief Executive of Jaeger, commented: "Continued investment in Jaeger has delivered improved profit performance, despite last year’s challenging economic environment, with current sales ahead by 12% on last year. The increase in Jaeger’s UK and international portfolio and the new online Flagship store underpins our future growth. In addition, our existing customers will have more choice through the expansion of Jaeger London – increasing both the product range and the number of stores in which it is available and we will be appealing to new customers through the launch of Boutique by Jaeger, in Autumn 2010."
Katherine Miles, Consultant at retail consultancy expert Verdict Research, explains to FashionUnited what the retail chain is doing right: “Jaeger has been working on the repositioning of the brand as a fashionable, contemporary luxury retailer, rebuilding its status. They invested in online, product development and new stores throughout the recession and increased their footprint through wholesale presence, all contributing to the increase in profit. By carefully selecting luxury and well established retailers to work with such as Selfridges, Harrods and John Lewis, they have increased luxury perception and brand awareness.”
She adds: “The new design director, Stuart Stockdale, joined in 2008 and has driven new product development. In a bid to underpin future growth, Jaeger is launching a new range aimed at younger customers for AW10 which has been priced very competitively and will attract a new generation of customers and gives existing shoppers more to choose from. Jaeger is positioned in the premium luxury market and with the new range growing their portfolio they are broadening their appeal to new and existing customers.”
Jaeger, with over 140 shops in the UK and Europe plus stores in Montreal, Japan, Dubai, Taiwan, Chile and Korea, also announced international expansion in key international markets: Europe, Middle East and North America – including Galeries Lafayette, Nordstrom and Ogilvy. Some commentators regard this decision as a bold response to overseas demands and the weak pound, which Miles says is attracting tourists to visit the UK who will be more willing to shop due to the exchange rate. However, Miles warns that any expansion plans by the brand will be approached with caution: “Expansion after recent years trading well is a viable way of growing the business by entering and growing in new markets. However, Jaeger once had a large international business before it fell in to the red and had to exit in the early noughties, so any plans for expansion will be taken with caution.”
Miles was unable to comment on the rumour mill that Jaeger is being groomed for sale - Ms Earl vehemently denied the rumour when asked about it by FT.com – but she does impart: “If it were to come on the market I am sure there would be interest as it has been producing successful figures for the past few years. Also, since Harold Tillman bought Aquascutum in September 09, there has been a lot of time spent integrating the businesses.”
Belinda Earl, Group Chief Executive of Jaeger, commented: "Continued investment in Jaeger has delivered improved profit performance, despite last year’s challenging economic environment, with current sales ahead by 12% on last year. The increase in Jaeger’s UK and international portfolio and the new online Flagship store underpins our future growth. In addition, our existing customers will have more choice through the expansion of Jaeger London – increasing both the product range and the number of stores in which it is available and we will be appealing to new customers through the launch of Boutique by Jaeger, in Autumn 2010."
Katherine Miles, Consultant at retail consultancy expert Verdict Research, explains to FashionUnited what the retail chain is doing right: “Jaeger has been working on the repositioning of the brand as a fashionable, contemporary luxury retailer, rebuilding its status. They invested in online, product development and new stores throughout the recession and increased their footprint through wholesale presence, all contributing to the increase in profit. By carefully selecting luxury and well established retailers to work with such as Selfridges, Harrods and John Lewis, they have increased luxury perception and brand awareness.”
She adds: “The new design director, Stuart Stockdale, joined in 2008 and has driven new product development. In a bid to underpin future growth, Jaeger is launching a new range aimed at younger customers for AW10 which has been priced very competitively and will attract a new generation of customers and gives existing shoppers more to choose from. Jaeger is positioned in the premium luxury market and with the new range growing their portfolio they are broadening their appeal to new and existing customers.”
Jaeger, with over 140 shops in the UK and Europe plus stores in Montreal, Japan, Dubai, Taiwan, Chile and Korea, also announced international expansion in key international markets: Europe, Middle East and North America – including Galeries Lafayette, Nordstrom and Ogilvy. Some commentators regard this decision as a bold response to overseas demands and the weak pound, which Miles says is attracting tourists to visit the UK who will be more willing to shop due to the exchange rate. However, Miles warns that any expansion plans by the brand will be approached with caution: “Expansion after recent years trading well is a viable way of growing the business by entering and growing in new markets. However, Jaeger once had a large international business before it fell in to the red and had to exit in the early noughties, so any plans for expansion will be taken with caution.”
Miles was unable to comment on the rumour mill that Jaeger is being groomed for sale - Ms Earl vehemently denied the rumour when asked about it by FT.com – but she does impart: “If it were to come on the market I am sure there would be interest as it has been producing successful figures for the past few years. Also, since Harold Tillman bought Aquascutum in September 09, there has been a lot of time spent integrating the businesses.”