×
1 853
Fashion Jobs
EUDON CHOI
Production Manager
Permanent · LONDON
TK MAXX
Loss Prevention Officer - tk Maxx Bristol
Permanent · Bristol
LONDON CONTOUR EXPERTS
Marketing Executive/Junior Manager
Permanent · LONDON
ESTÉE LAUDER
Tom Ford - Business Manager - Flannels - Fosse Park, Leicester - 37.5 Hours - Full-Time - Permanent
Permanent · Leicester
VF INTERNATIONAL
International Account Coordinator - Ftc 12 Month
Permanent · NOTTINGHAM
TIMBERLAND
Credit Controller - German Speaking - Timberland
Permanent · CALVERTON
THE NORTH FACE
Credit Controller - Italian Speaking - The North Face
Permanent · CALVERTON
THE NORTH FACE
Credit Controller - French Speaking - The North Face
Permanent · CALVERTON
PINKO
Supervisor
Permanent · MANCHESTER
RALPH LAUREN
Operations Manager
Permanent · Cheshire
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - Sprucefield - 30 Hours - Full Time, Permanent
Permanent · Lisburn
ESTÉE LAUDER
Clinique - Consultant - Edinburgh, John Lewis - 37 Hours - Full-Time, Permanent
Permanent · Edinburgh
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - Sprucefield - 30 Hours - Full Time, Permanent
Permanent · Lisburn
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - 30 Hours - Full Time, Permanent
Permanent · Lisburn
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - 30 Hours - Full Time, Permanent
Permanent · Lisburn
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - 30 Hours - Full Time, Permanent
Permanent · Lisburn
ESTÉE LAUDER
Clinique - Consultant - House of Fraser, Maidstone - 15 Hours - Part Time, Permanent
Permanent · Maidstone
ESTÉE LAUDER
Clinique - Consultant - Boots, Princes Street, Edinburgh - 14 Hours - Part Time - Permanent
Permanent · Edinburgh
ESTÉE LAUDER
Clinique - Consultant - Lisburn, Boots - 30 Hours - Full Time, Permanent
Permanent · Lisburn
HUGO BOSS
Wholesale - Senior Sales Executive - Hugo Womenswear
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - John Lewis, Edinburgh - 16 Hours - Part Time, Permanent
Permanent · Edinburgh
SHISEIDO
Marketing Director - Shiseido, Clé de Peau Beauté, Drunk Elephant
Permanent · London
Published
Apr 27, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Is Under Armour's Kohl's deal bad for business?

Published
Apr 27, 2017

In an oversight of retail planning, Under Armour's Kohl's deal is effectively causing the product to be sold cheaper in the department store than at other retail outlets.

UA at Kohl's


As Under Armour needed to fill the void the closing of The Sports Authority left in its business plan, Kohl's seemed to be a perfect retail partner. Like its competitor Nike, Under Armour wanted to expand its women's business. The Kohl's consumer is primarily a suburban mom, which fits the profile.

CEO Kevin Plank was quoted saying, "We believe that there's a massive opportunity with the consumer that's walking into those [Kohl's] stores and looking for the Under Armour brand and, frankly, they haven't been able to find it."

The problem is that Kohl's is a constant discounter, always running sales and deeply marking down product prices. This is a poor strategy for Under Armour's retail business, particularly when there is approximately a 50% overlap of assortment at Dick's Sporting Goods, which does not follow Kohl's markdown tempo or policies.

When the Dick's buyers see how Kohl's is marking down the product and pulling the consumer there, there is a good chance the buyers won't buy into the same assortments. Either Under Armour will be forced to resegment and offer a different tier of product to Dick's, or it may struggle to keep up the amount of touchpoints it currently has with consumers.

Citi Research analyst Kate McShane noted that Under Armour is trying to copy Nike's market segmentation by offering different levels of product to different retailers, but she said that "will require an expanded assortment and increased emphasis on price point planning than UA has historically offered."

Also key to a depressing forecast for Under Armour is the fact that Kohl's is not a premium retail store. Under Armour has admitted it missed the boat on the athleisure trend and that it needs to play catch up with better lifestyle product design and positioning.

As another analyst noted, selling at "Kohl's does little to enhance the Under Armour brand, especially when there's the need to build a lifestyle business."

Under Armour is continuing to struggle with the expectation that it will be posting its first-ever quarterly loss this quarter. If the Kohl's deal is any indication of how the brand's retail strategy will play out, there is a lot of work to be done to remain competitive.
 

Copyright © 2021 FashionNetwork.com All rights reserved.