With the shifting dynamics in the retail landscape, prominent Danish fashion brands are reassessing their presence in the UK market.
- Danish fashion labels like Ganni and Wood Wood are reducing their UK operations, citing oversaturation and high operating costs.
- Ganni has transitioned its focus towards Paris, closing its London office and identifying the city as a new strategic hub.
- Despite closures, select Scandinavian brands continue to thrive with independent UK retailers due to strategic selection of offerings.
- Challenges such as high UK operational costs and lack of VAT-free shopping deter some Scandinavian brands from maintaining a UK base.
In recent years, the UK market has embraced Danish fashion labels for their unique blend of maximalist designs and basic staples. Brands such as Ganni, Wood Wood, and Han Kjøbenhavn have gained popularity. However, as of late 2023, some of these brands have begun to downsize their UK operations. Wood Wood’s London store closure and Han Kjøbenhavn’s liquidation of its UK business mark significant changes in strategy.
Ganni, a leading name in Danish womenswear, has shifted its focus to Paris, closing its London office to leverage the French capital as a new global platform. This strategic move is part of a broader effort to reduce costs and tap into new markets. A centralised Paris office allows Ganni to streamline operations and target a different audience, potentially showcasing collections at Paris Fashion Week rather than in Copenhagen.
The oversaturation of Scandinavian brands in the UK market has driven some retailers to diversify their offerings. Boutique owners, such as those outside of London, have opted to stock more Italian, French, and Australian labels. This strategy aims to differentiate their offerings in a competitive landscape where many stores carry similar Danish products.
Despite the scaling back, certain Danish brands perform exceptionally well among independent UK retailers. Stores like Young Ideas and Pamela Shiffer’s boutique report strong sales with selective Scandinavian brands, highlighting a successful formula of curation and quality. Products that balance meeting, work, and social scenarios seem to resonate well with customers.
High operational costs are a significant obstacle for Scandinavian brands considering UK expansion. Factors such as rising energy costs and business rates make the UK less attractive. Additionally, the absence of VAT-free shopping further burdens tourists, making it more cost-effective to purchase in countries like Denmark or France. Ganni’s move to Paris reflects a strategic shift to minimise these expenses and refocus growth efforts.
The evolving UK retail environment compels Danish fashion brands to reassess their strategies, with many shifting focus to cost-effective markets.
