Premier Investments chairman Solomon Lew is waiting for a retail recovery in the United Kingdom before scaling Peter Alexander in the market any further than it has.
This comes months after Premier executed the sleepwear brand’s market entry into the UK late last year, opening three stores around London and a local dedicated website, with total set up costs amounting to $6.3 million according to the group’s FY25 half yearly accounts.
But for the foreseeable future, Lew confirmed in a media teleconference call last week that there is no commitment to opening any more Peter Alexander stores in the United Kingdom.
“You've got to understand that the UK market is very deflated at the moment, retail business across the board is extremely difficult, and we're investing for the long term,” he said.
“So when we went in there, we set up an infrastructure. There were pre-costs. We have to send property teams, IT teams, human resources teams. We needed to set everything up. We have an office over there.
“We've got stores earmarked, but we won't be opening any more stores until we see some positive signs in the marketplace that the economy is recovering.”
According to the Office for National Statistics, retail sales volumes in Great Britain are estimated to have risen by 1.7 per cent in January 2025. This follows a fall of 0.6 per cent in December 2024, revised down from a fall of 0.3 per cent in ONS’ last bulletin.
Fashion sales offset the slight rise in January, down 2.7 per cent.
These subdued growth stats are similar to the Australian market over the last few months, alongside softened consumer sentiment.
Despite the subdued market, PwC UK reported that household finances are the best they’ve been in three years, with almost two in five having money left at the end of the month.
“However, inflation remains sticky and interest rates are looking likely to come down slower than expected,” the company wrote on its website. “When combined with ‘sticker shock’ following a period of high inflation, consumers are understandably cautious about their finances.
“As things stand, most categories will see more subdued growth as normalised levels of inflation return throughout 2025. The focus for many should turn to taking market share and protecting margins.”
As part of the local retail push, Lew said Premier has spent quite a bit of money on brand awareness. It is not the first time Premier has launched a retail brand in the UK, with its Smiggle business first entering the market in 2012 with retail stores.
“There are costs that are that you have to absorb,” Lew said. “It's like investment. It's like goodwill.
“But the [Peter Alexander] brand is so loved and so accepted here in the Australian and New Zealand market that I really don't have a doubt that it won't work in the in the UK. But, you know, it's all about the timing.”
While the UK may need to wait for more Peter Alexander stores, over 15 retail opportunities for the brand have been identified in the AU/NZ market according to Premier.