Following today’s news (Monday 01 July) that Office is on the brink of launching a CVA, Kate Ormrod, Lead Retail Analyst at GlobalData, a leading data and analytics company, offers her view:
“Office has been outshone by both multichannel and online rivals in the form of JD Sports and ASOS, with range overlap the primary reason for the specialist’s difficulties, reducing its top of mind appeal among its core youth customer base and resulting in increased discounting. With Footasylum now under JD Sports’ wing, the pressure will only grow.
“Office has also struggled as leading sports footwear brands such as Nike and Adidas refocused on their retail operations and scaled back third party distribution on key lines. This has left its own brand offer exposed – with a need to better justify prices via investment in quality and design. With online already accounting for 33% of its global retail sales, and the channel not yet fully exploited, a leaner store estate is a must to drive its recovery.”