Umbro umbrage at supermarket cost cutting

One of the few areas of British retail yet to be subsumed into the all conquering might of the supermarkets looks set to fall as the big chains enter the branded sportswear market.

Asda is leading the charge having indirectly sourced 50,000 England football shirts from Umbro, riling the sportswear giant by claiming the £50rrp to be “extortionate” and slashing the price to £25.

Big name brands such as Nike, Adidas, Admiral, Diadora, Gola, Speedo and Head have long feared supermarkets cutting into their margins and diluting their products glamour with the stack ‘em high sell ‘em cheap retailing culture.

This has seen the sportswear manufacturers refuse to deal with the grocers, preferring instead to focus on specialist retailers such as JJB Sports. With tough trading conditions prevailing and a number of non-food retailers going out of business however supermarkets are becoming increasingly attractive to suppliers.

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