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Why some fashion stores like Penneys and TK Maxx resist selling online

Dee Duffy, a lecturer in retail and fashion studies at DIT’s College of Business, says postage and packaging costs alone are a strong enough deterrent for so-called fast fashion firms that sell at discount prices. “If you think of a T-shirt for €5, by the time you’ve paid postage and packaging, you’ve just doubled the cost of the purchase,” she says. Five years ago, Primark-Penneys trialled a web service with Asos but shut down the offering because shipping costs were too high. That said, Duffy reckons it’s only a matter of time before the chain moves into selling online. She thinks the retail giant won’t stand for losing ‘something-for-the-weekend’ shoppers to rival, which has managed to sell items for as little as €15 to 16-30 year olds and still make a profit. “(Penneys’) teen market doesn’t really have access to credit cards to consume online, but they do have their mid-range millennial market, which is a valuable market,” Duffy says. “I would imagine if Penneys move into (e-commerce), they’ll want to be the leaders in that space of being able to offer fast-access delivery.” Ward agrees that it’s not a case that Penneys has “refused to sell online” but that it’s waiting for the right moment to strike. “They’ve identified what they’re good at so they’ve stuck to the knitting. Primark’s a very agile business,” she says, adding that the retailer has leveraged social media to drive brand recognition. “It’s not as if they’re dinosaurs. They’re still embracing the online culture but just choosing not to sell their merchandise through that route,” she says. No one from Penneys was available to speak to Fora for this story, but the company issued a statement to say that “online is really important” for the business.

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