Hard discount is full of clothes

After the cans of peas sold by twelve to sacrifice price, this is the ready-to-wear also seized by the highly contagious fever “maxi discount” (or hard discount). A phenomenon of the times: last year, 60% of households reported regular attendance this type of store against 38% four years ago, according to figures from the Secodip institute specializing in consumer products. No wonder this growth gives ideas to big names in the distribution of clothes: the market seems exploding, while the purchasing power of French is showing signs of weakness.

“Hit hard”. This is not really a coincidence that Vivarte, the former group André taken over three years ago by a British financier, has decided to impose by force this sector to clear: last week, discretion, not far from a school year synonymous with heavy spending Vivarte launched almost at once 25 new stores under the Party prices. In most cases, the operation was carried out by repeating the walls he already possessed with the sign Creeks, in disarray since the late 80 With an average area of 700 to 800 square meters, installed as the max discounts food (Lidl, Aldi, etc.), on the outskirts of towns (including six in the Paris region), these new outlets offer the full range of ready-to-wear basic at a price means unbeatable: 4 euros per item.

“We wanted to strike hard at the national level,” says Jean-Michel Black, CEO of Halle clothing (another chain of Vivarte) and mentor Party prices, in a recent interview at the Textile Journal. According to him, the top prize is of a pair of socks sold at 60 cents.

Ultracassé. A deliberately cheap strategy touted by Bernardo Sanchez Incera, the new strong man of Vivarte. Who knows a lot about trends and fashion: in March before becoming CEO of the French group, the person concerned has made the heyday of the glamorous Zara, before being appointed in July 2001 to head the fashion division of LVMH, the king of luxury. This time, he works on rates ultracassés suppliers: “We want the lowest price in each product category,” he said in early July to AFP. “Many products come from Asia,” he added … without giving further details on the conditions of manufacture of clothing at very low prices from these developing countries. “We’ll be cheaper than Tati” insists even Bernardo Sanchez Incera. History of causing competition?

This clearly did not see the blow coming from € 4. Tati, for example, still seems too tangled in its repeated restructuring to be able to withstand the attack of Vivarte. Worse, the group seems Fabien Ouaki desert gradually the market for cheap clothes: in recent months, his strategy is to “evolve the product offering” to increase the share of “bazaar” of 25% to about 40% supply, to the detriment of the ready-to-wear who had made his fortune.

The cons attack may come from Patrick Mulliez, son of the founder of Auchan (Gerard) and patron of Kiabi, cheap brand but not hard discount: As a first attempt, the son Mulliez acquired in early summer teaches Choyo, positioned on the same niche as party prices. When will the socks to 10 cents?.