Sainsburys Challenges Marks and Spencer with Premium Fashion Expansion

Sainsbury’s is mounting a strategic challenge to Marks and Spencer’s established position in the middle market fashion sector through a significant expansion of its Tu clothing brand into premium product categories. The supermarket chain plans to introduce upmarket ranges featuring merino wool, cashmere knitwear, 100 per cent linen garments, and genuine leather accessories throughout 2026.

The retailer has recorded a 300 per cent increase in premium style offerings over the past year, marking a substantial shift from Tu’s traditional budget positioning. This strategic pivot represents a direct assault on M&S’s lucrative customer base, which has demonstrated strong appetite for quality materials including cashmere jumpers, leather goods, and corduroy trousers.

Ben Smith, who assumed the role of clothing managing director at Sainsbury’s last year, confirmed the supermarket has deliberately stretched its fashion ranges upmarket. The executive emphasised that the company is now adding depth to its product offering, mirroring the approach that has driven M&S’s successful clothing revival in recent years.

M&S has leveraged improved design quality to rehabilitate its fashion reputation, with a YouGov survey identifying the retailer as the market leader for quality perception amongst consumers. The chain has cultivated a growing demographic of fashion shoppers aged between 35 and 50, a segment Sainsbury’s now seeks to capture.

The menswear category represents a particularly significant growth opportunity for Sainsbury’s. Smith stated the company aims to double its menswear sales over the next two years, noting initiatives such as updated chino fits are already generating positive customer response. The retailer currently commands approximately 3 per cent of the menswear market, substantially behind M&S’s 10.4 per cent share, which itself increased from 9.9 per cent year on year.

Smith acknowledged that product improvement takes priority, stating the company is already observing early positive indicators this year. The strategy involves attracting male customers from food aisles into clothing departments, leveraging Sainsbury’s primary customer traffic.

The clothing expansion proceeds despite chief executive Simon Roberts’s stated focus on a food-first strategy. In recent years, Sainsbury’s has prioritised fresh produce expansion whilst scaling back non-core operations, including its banking division. However, Smith maintains that Sainsbury’s customers demonstrate clear demand for the clothing proposition, necessitating operational efficiency in this segment.

Financial performance data supports the clothing division’s expansion. In interim results through to 13 September, Tu Clothing recorded sales growth of 7.8 per cent, outpacing the 5.3 per cent increase in grocery sales. This differential suggests potential for clothing to contribute meaningfully to group performance, provided the premium positioning resonates with target customers.

The competitive landscape in mid-market fashion remains intense, with established players including Next alongside M&S commanding substantial market positions. Sainsbury’s success will depend on execution quality, particularly in design, material selection, and retail presentation, as it seeks to bridge the perception gap with more established fashion retailers.