Sainsbury’s is reportedly exploring the possibility of creating a new online marketplace for High Street fashion brands.
Industry sources told the Sunday Times the supermarket has approached brands including the White Stuff and Jigsaw around the notion of selling its clothing through its website and in up to 60 of its larger stores.
The newspaper reported that the initiative is being spearheaded by Sainsbury’s’ head of non-food sales Paula Nickolds, who previously served as managing director of John Lewis from 2017 until 2020.
The potential move is likely to heap further pressure on John Lewis amid reports that Sainsbury’s will offer lower rates of commission than the department store, which charges around 40 per cent on brands to sell their products in its outlets.
John Lewis recently announced losses of £234 million, with ‘queen of shops’ Mary Portas denouncing the retailer in an open letter stating it had “lost its soul” after reports emerged that chief executive Sharon White was mulling a dilution of the company’s longstanding mutual ownership structure in a bid to raise between £1 billion to £2 billion of fresh investment.
However, White has since insisted that the partnership’s mutual ownership structure will remain in place.
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