Poundland chief executive Jim McCarthy said his customers are concerned about products being ethical, but not above price. “We do have a responsibility to the environment, but a lot depends on what you can deliver,” he said. “Because we are a price-driven business, we have to source the cheapest products.”
Value fashion bosses Peacocks chief executive Richard Kirk and QS vice-chairman UK and chief executive European divisions Findlay Caldwell agreed.
Kirk said: “It is difficult for a value retailer to comply with ethical regulations in the same way as say, Arcadia or Tesco, but we try to piggyback on their moves. Customers care up to a point, but it is price that matters.”
The panel stressed that they are all doing as much as possible to be environmentally and ethically friendly. Caldwell said QS has a sourcing policy in place for all suppliers and to quality control factories, but “it is difficult for a small player to check everything all the time”.
The panel said that in the tougher retail climate, they have to differentiate their offer to stay in the game. Kirk said: “We can’t compete with Primark or the supermarkets, so we have to make our offer more high street fashion.”
Caldwell added: “There is no clear differentiation of what is value anymore as traditional value players have moved into mid market and those traditional mid-market players have sharpened prices. We all have to look at our offer and decide where our strengths are.”
The panel also agreed there was a further likelihood of consolidation in the value sector as the market toughens.
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