M&S is forecast to benefit from its consistent pricing on school uniforms.
As parents across the UK gear up for the back-to-school season, retailers are facing increasing pressure to offer competitive prices amidst a backdrop of ongoing cost-cutting measures by consumers.
According to the latest analysis by leading data and analytics company GlobalData, retailers who fail to effectively communicate their pricing strategies risk losing out to rivals.
“The 2024 back-to-school retail winners will be determined by their ability to appeal to a price-conscious shoppers,” said Zoe Mills, lead retail analyst at GlobalData.
“Consumers are cutting back where possible, seeking low-cost alternatives to ensure they can provide all the items required.”
GlobalData’s research revealed that the number of consumers who stated they actively cut back on back-to-school spending to save money increased by 5% to 73% in 2023.
This trend is expected to continue, despite the recent deceleration of inflation.
Marks & Spencer (M&S), known for its consistent pricing on school uniforms, is poised to benefit from the current market conditions.
“Marks & Spencer has reiterated its fourth consecutive year of price locks on its school uniform and as shoppers cut back where possible, Marks & Spencer’s clear messaging and reputation for quality should ensure it is a winner this year,” explained Mills.
Among the UK’s major supermarkets, Tesco is predicted to have a strong back-to-school season, potentially outperforming its rival Asda.
“Asda has been the leader for uniform shopping, but Tesco is hot on its heels, making notable purchaser share gains in 2023, posing a significant threat to the value grocer,” said Mills.
Tesco’s focus on range, quality, and display, coupled with its one-year guarantee on uniforms, has helped it gain market share in recent years.
Retailers must strike a balance between affordability and quality, particularly when it comes to school uniforms.
“Parents understand the stresses placed on uniforms, and replacing uniforms frequently at a low price can cost more than spending a little more initially on pieces that last. Retailers must get the balance right here,” noted Mills.
By offering a combination of competitive prices and quality products, retailers can position themselves to capture the back-to-school market and drive sales.
Source from Retail Insight Network
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