Foodstore fashion flies the flag

The Savills Blog

Foodstore fashion flies the flag

UK supermarkets are embracing increased demand for their clothing ranges to try new store formats.

Historically, clothing spend in supermarkets has occurred opportunistically; when consumers visited a physical store to buy food, and shopped the clothing as a secondary impact of the trip. However, this habit is changing and we are noticing a very different approach from shoppers today. Consumers are now going out of their way to visit supermarkets specifically for the clothing offer.

“Foodstore fashion” can be characterised by the clothing lines offered by UK grocers: Tesco’s F&F, Sainsburys’ TU, Morrisons’ Nutmeg, and Asda’s George. While clothing in some format has been part of the supermarket offer for many years, these brands are now receiving heightened attention as grocers heavily invest in their clothing ranges, and increasingly draw from high fashion trends to create something accessible. This is paying off, with like-for-like sales up 3.5% at George and 8% at TU in Q1 2025.

New ways to shop

As clothing stocked by supermarkets gains popularity, operators are exploring new ways to showcase their ranges to a growing pool of consumers. Asda recently opened its first standalone George store at Crown Point Retail Park in Leeds, a new store concept that, if successful, will replace its Asda Living brand across the portfolio.

Asda has also outlined its desire to overtake Primark as the UK’s largest clothing retailer by volume, with George spearheading a broader turnaround plan. Chairman Allan Leighton has expressed his intention to make George more prominent in up to 100 stores, capitalising on the clothing arm’s strong sales growth despite Asda’s wider market challenges. 

The move towards standalone fashion stores may not only pave the way for similar store formats from other operators, but it also signals a subtle shift into rethinking spatial layouts of stores to better accommodate evolving consumer preferences, and further diversify the non-food offering to boost revenue streams.

Increasing consumer touch points

Consumers are increasingly utilising omnichannel functionalities such as ordering online and click-and-collect. With brands like George and TU having offered online platforms to purchase clothing for years, it’s no surprise that Tesco - the UK’s biggest grocer - has re-entered the online fashion market. F&F relaunched online in May this year, marking its return after the closure of Tesco Direct in 2018. 

Social media platforms like TikTok and Instagram have similarly expanded the reach of supermarket fashion, often driving online purchases. At Tesco, 17% of consumers bought clothing via social media in the past year, compared to 15% at Asda and 11% at Sainsbury’s (based on a GlobalData survey of 2,000 respondents).

These digital channels have boosted product visibility, and in-turn, sales. This growth is prompting grocers to reconsider the visual merchandising, layout, and advertising of in-store clothing ranges, as the halo effect draws new customers in store to see and feel products they’ve discovered online.

Tapping into high street trends 

Supermarkets are also capitalising on the popularity of subsectors such as athleisure, by offering high-quality products at affordable prices. Activewear is heavily stocked by brands like F&F and TU, with celebrity endorsements increasing both exposure and sales. Zara McDermott’s activewear line Rise was launched in 384 Tesco F&F’s in 2024, and has been praised for creating a clothing brand for every woman. The brand has since partnered with other retailers such as New Look to increase its reach to consumers.

It will be interesting to see how grocers continue to adapt non-food offerings and spatial layouts of stores to meet consumer demand and support growth trajectories. One key consideration is the longevity of products, given the fast-changing nature of fashion trends; grocers must consider how their supply chains can evolve to support sustainability rather than exacerbate the problem in the race for market share.

 

Further information

Contact Ellie Marfleet or Natasha Austerberry

Savills Retail

 

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