Shoprite to open string of UNIQ clothing stores
By THABISO MOCHIKO
● Shoprite is aiming to launch about 20 standalone clothing stores in the next three to five years as it rushes to capture market share in this highly competitive sector.
Six months ago, the food retailer opened UNIQ, its new clothing business, presenting another expansion opportunity to increase its reach and profitability. The UNIQ range consists of premium basics including womenswear, menswear and kiddies’ clothing.
On Thursday, Shoprite opened its 10th UNIQ store in Rosebank. It wants to open eight more stores by the end of the year, with each creating 12 jobs.
While its rollout might seem less aggressive than rival Pick n Pay, which is aiming for 60 to 80 new stores this year, Michael Coles, Shoprite Group’s GM of clothing, said the company is in discussions with landlords and the number of new stores a year may be higher than the target.
“We are aiming to do the same number ... in the next three to five years and are targeting the bigger and more established shopping centres, but we will also go to small centres if space is available,” said Coles.
“What we are doing is offering customers everyday items that form the building blocks of a wardrobe like T-shirts, dresses, shorts and knitwear. The difference is we are offering premium-level quality and our prices are not as low as Pep and Mr Price.”
He said the rollout plans should ensure that there is sufficient stock at new stores so customers don’t shop elsewhere.
To distinguish itself from rivals, UNIQ is offering products and services such as pure linen items, garments with cotton from Supima produced in South Carolina in the US, and a self-checkout service.
Coles said UNIQ will also ensure that customers always find their size and colour preference for all clothing.
“We see competition more in the entry point, and everyone is racing to sell the cheapest T-shirt, dress, shorts. We are not the cheapest but we are aiming to be the best in quality of items we sell. We are selling T-shirts that will last,” he said.
The apparel market, which is expected to grow by an average of 2% over the next five years, is highly competitive and fragmented, but analysts believe there is room for more players.
Euromonitor research analyst Kauthar Jakoet recently said that forward-thinking players can increase market share by offering products that meet changing consumer needs and preferences.
For Pick n Pay Clothing and UNIQ, selling clothes has a purpose beyond generating new revenue streams. While diversifying and expanding portfolios to increase revenue is a motivation, selling clothes also serves a strategic purpose, said Jakoet.
“It enables these retailers to enhance their brand image, create a holistic shopping experience and meet the needs of their customers as they evolve. As a result of offering clothing, they are able to attract new customers and strengthen customer loyalty,” she said.
Pick n Pay Clothing, which has recorded strong growth due to the popularity of its quality basic items, has shifted from being a strong womenswear retailer to a family retailer with emphasis on kidswear and menswear to strengthen its proposition in the value market. Since 2020 it has launched curated collections by upcoming designers at accessible prices.
Asked if UNIQ will look into partnerships with local designers, Coles said the company would do this at a later stage.
“There is a worldwide trend for retailers to partner with designers and we are always open to such partnerships. We will do it in future. We are still a baby in this sector; we are still crawling and there are lessons to be learnt and lots of improvements to be made as we go along.”