Sports Direct V. Kurt Geiger – Who Won The Battle For Consumers On Reopening?

Brands are still showing they care, but do good ethics convert to sales?

Customers in England flocked back to their local high streets and shopping centres in their thousands yesterday, keen to indulge in some retail therapy after nearly 3 months of store closures.

With a multitude of safety messaging and distance markers, stores are keen to show how they are working to keep customers and colleagues safe. Community messaging and rainbows showing support for the NHS is present, but the real focus has clearly switched to safety and sales communications, as stores work to entice their long-lost shoppers to return and spend. 

Reopened fashion footwear brand, Kurt Geiger opened 24 out of its 57 stores yesterday and had plenty of deals to entice the customers back in to store. Trade magazine to the fashion industry, Drapers, reported that Kurt Geiger’s Westfield Shepherd’s Bush and Covent Garden branches yesterday enjoyed a 50% increase on y-0-y sales. The stores are enshrined in colour, their windows ablaze with multi-coloured WE ARE ONE campaign messaging and safety information brought to life with a rainbow colour palette. 

The British footwear brand has launched the WE ARE ONE collection featuring a specially designed t-shirt, tote bag and mask, with 100% of profits dedicated to their charity campaign. In addition, it is donating all store profits in the first month of reopening to NHS Together Charities and aims to donate £1m by Christmas.

In March, Chief Executive Neil Clifford, who suspended his salary whilst stores were closed was one of the first executives to step into the spotlight and make such a pledge.

Speaking yesterday he said:

“Seeing customers back in stores today has been encouraging. Obviously today was always going to be different to a normal trading day, but to see strong trading, particularly in Covent Garden and Westfield, is promising. We have also donated £500k worth of product in recent months to NHS and frontline workers through a 50% discount card. Consumers are now shopping with a “conscience” and we all need to be more aware of making a positive impact in all we do. Likewise, fashion needs to be more sustainable and less changeable which will result in fewer but more enduring collections.”

Recent times have shown that now more than ever, consumers are holding brands accountable for the actions as well as their words, and Kurt Geigers #kurtcares demonstrates that the business is willing to take tangible steps to support the community. 

But will consumers care and adjust their shopping habits as a result of a brands actions away from the shopfloor? 

In March, Sports Direct received criticism for its coronavirus response and letter to the government asking for its “essential” stores to remain open.

Owner Mike Ashley apologised, describing the letter as “ill-judged”. 

 Consumers voiced their anger at the brands apparent lack of respect for the safety of its staff and customers, with some threatening not to return. 

 Fast forward 3 months and Sports Direct stores also reopened on Monday, to huge queues and few signs that its previous actions would affect demand. Many of its shoppers were driven by the brands announcement of a 50% discount for NHS workers, whom it described as a team “who gets all our support”. 

 Whatever the reasons behind this display of community spirit, it remains to be seen whether customers will make conscious shopping decisions based on a brands behaviour, or if the allure of a significant discount is just too hard to ignore.