At first glance, the mid-market UK retailer known for selling a bra every two seconds, Marks & Spencer, and the premium Australian department store with luxury aspirations, David Jones, would seem to be a poor fit. Earlier this week, David Jones announced it was launching Marks & Spencer’s core lingerie and sleepwear range in selected stores and online. However, Phoebes Garland, director of fashion consultancy Garland & Garland, believes the partnership has merit. “
“It can be a fine line between knowing your customer and trying to be everything to everyone, but I think in this retail climate it’s important to take calculated risks too,” Garland told Inside Retail.
“A lot of retailers and brands tend to play it too safe for fear of losing sales, and I can see an alignment simply in the fact they are both strong brands recognised by consumers.”
M&S, as the British retailer is fondly called, launched online in Australia in 2022, but its recent launch into David Jones appears to be making a greater splash.
“Many brands, including M&S, strategically align with established department stores or leverage wholesale channels when entering new international markets,” Garland said.
“This approach serves as a prudent testing ground, enabling brands to gauge customer preferences, gather valuable insights, and refine their product offerings before committing to the substantial investment required to open standalone retail stores,” she added.
David Jones hints at a strategic shift
Garland acknowledged that M&S is a deviation from David Jones’s usual premium and luxury offering; however, she noted that most retailers and brands are looking at expanding their customer base.
There appears to be a strong strategic alignment between M&S and David Jones that makes this partnership logical, even if it’s not obvious at first glance.
“While M&S is traditionally positioned at a slightly different price point than David Jones’ core customer base, recent shifts – such as the appointment of Erica Berchtold [as chief commercial officer] – indicate a focus on appealing to a more mainstream, value-conscious market,” Garland said.
“Erica’s experience with Mosaic demonstrates her understanding of the mass market, allowing her to navigate and attract a broader customer segment, especially as David Jones expands into more value-driven offerings.”
Given ongoing cost-of-living pressures, Garland believes this move toward more affordable pricing strategies aligns with current consumer demand for value.
“Overall, the partnership seems to be a well-considered attempt to broaden the customer base and adapt to market realities, making the brand alignment quite relevant and promising for both parties,” she stated.
Marks and Spencer bets on success
After a soft launch in the Australian market with an online store in 2022, it seems that M&S is ready to expand its presence through wholesale.
M&S is known for selling a single bra every two seconds, a statistic that is envied by lingerie brands around the world. But the question remains, will M&S’s popularity translate to and resonate with the Australian market?
“I have seen a lot of international brands launch in Australia with some unrealistic expectations of sales figures, and we simply don’t have the population of the US or Europe,” Garland shared.
“However, I think if they are prepared to be patient and with sufficient marketing to the Australian customer, they will find Australia a great market for them. M&S is a globally recognised brand, and there is definitely a market here for them to tap into.”
Further reading: Is David Jones’ partnership with Qantas the panacea it has been looking for?