Marks & Spencer Acquires Jaeger: Commentary

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Marks & Spencer Acquires Jaeger: Commentary
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Casualisation and affordability crucial to making Marks & Spencer’s acquisition of Jaeger a success, says GlobalData

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Q3 2020 hedge fund letters, conferences and more

Following the news that Marks & Spencer has bought Jaeger out of administration:

This Hedge Fund Was Up More Than 100 Percent For 2020

InvestingADW Capital had an incredible 2020 with a 119.2% net return for the full year. At a time when most other funds have struggled with relatively low returns, ADW posted double-digit returns in several months of 2020. In December, the fund returned 19.91%, while in November, it posted a return of 39.63%. For the fourth Read More


Comment On Marks & Spencer Acquiring Jaeger

Pippa Stephens, Retail Analyst at GlobalData, a leading data and analytics company, offers her view on the situation:

“Though Marks & Spencer is not expected to retain any of Jaeger’s physical stores, the addition of the brand to its online offering will allow Jaeger to experience greater accessibility, while the overlap between Marks & Spencer and Jaeger’s existing customer bases should make for a relatively seamless integration. However, since M&S has tended to lag behind on digitalisation, it may struggle to convince its older shoppers to browse Jaeger via its website, with many consumers instead preferring to shop online through retailers with more reliable and established platforms such as Next or John Lewis.

Jaeger’s premium price points and focus on formalwear are unlikely to resonate well with Marks & Spencer’ shoppers in the current climate, since the COVID-19 pandemic has put a halt on all social events and economic uncertainty has caused many to trade down to midmarket and value players. Therefore, to make this acquisition a success, M&S must review Jaeger’s pricing architecture and make it more affordable, while creating more unique designs with sustainable fabrics will help customers to better justify their investments. Expansion of its casualwear offer will also help to boost relevance as consumers continue to spend more time at home in 2021, and it will need to display these ranges prominently on its homepage, in marketing communications and on social media to drive awareness.”


About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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