Legacy retailers need to re-engineer their business models to digital-first.
According to Moody’s by 2023 UK consumer spend on fashion will decrease from under £35 billion to over £30 billion. But top online retailers like Amazon and Asos will see their market share rise from the current figures of 27% to 35% in 2023.
This article says the market shares of top legacy retailers increased to about 22%, while the middle market players have growth hovering around 12% for the past decade. Despite having operations and portfolios to compete with top legacy retailers, midsized legacy retailers lack the capital to transform into digital-first operators.
Retailers like Next and Inditex capitalised on their digital strategies as their average earnings exceeded the capex percentage. The author contends that while legacy retailers will have to invest in digital models to keep up with big players, the capacity of retailers to invest in digital may differ.
[3 minute read; article may be behind a paywall]