The UK’s love affair with Scandinavian fashion faces challenges. Recent closures of Danish brand offices raise questions about sustainability in the UK market. Amidst high operational costs, Danish labels are reassessing their UK presence. Some boutiques flourish with selective Scandinavian offerings. Rising costs and strategic refocusing drive Danish brands’ UK market adjustments.
In recent years, UK consumers have been captivated by the distinctive designs of Scandinavian fashion, characterised by maximalist occasion dresses and high-quality basics from brands such as Ganni, Wood Wood, and Stine Goya. These appealing designs have become fixtures in both major department stores and independent boutiques across the country.
However, the landscape is shifting. In late 2023, Wood Wood, a renowned Danish streetwear brand, shut its London store. Likewise, Han Kjøbenhavn, another Copenhagen fashion label, placed its UK business into liquidation, closing its London flagship. Ganni, a significant player in Denmark’s fashion industry, announced the closure of its UK office as it shifts focus to Paris, deemed its next ‘global platform’.
A womenswear boutique owner outside London indicates that UK high streets are now saturated with Scandinavian fashion, pushing her to diversify offerings with Italian, French, and Australian labels. Despite the saturation, some UK retailers, like Young Ideas in Derbyshire, continue to succeed with a careful selection of Scandinavian brands. Their strategy involves choosing pieces that resonate with their customer base, turning selective stocking into an effective business model.
Pamela Shiffer, owner of a boutique in North London, reports robust sales from Danish brands, especially with AJ Project 117. She highlights that customers appreciate the superior fabrics and subtle designs of these brands, which are not overtly flashy but provide comfort and quality, ideal for professional and casual settings.
Despite such successes, Danish brands face high operational costs in the UK. The Office for National Statistics noted an increase in the Consumer Prices Index, driven by gas and electricity costs, making it economically challenging for international brands. Joanna Davies of Black White Denim cites high rents, business rates, and the absence of VAT-free shopping as substantial burdens.
Looking ahead, Ganni plans to expand elsewhere, reducing its UK presence. Industry insiders suggest that Ganni may shift to showcasing at Paris Fashion Week, reflecting a strategic pivot away from the UK. The decision is partly driven by new leadership’s preference to centralise operations, avoiding multiple international offices.
While enthusiasm for Danish fashion remains, the impending business rates hike could make the UK a less attractive market for international brands. This potential shift could reshape the landscape for both domestic and international retailers.
The UK market’s high costs and strategic redirections are prompting Scandinavian brands to reassess their commitments, yet the allure of Danish design endures.
