Changes on the High Street

[TheDaddy]

Originally Posted by 1andrew1

I agree that private equity severely crippled the business helping its demise. But there's no legislation planned to stop a retailer selling its freeholds or being over-burdened with debt.

Selling off the freeholds is exactly what Kingfisher did with Woolworths before it demerged the company.

I did mean there was legislation for their shoddy practices in general rather than that one in particular and I think the EU and US are going to be particularly hard on them in 2021 and it is long overdue

[1andrew1]

Some potentially good news.

Frasers tycoon Mike Ashley swoops on Debenhams

Billionaire Mike Ashley is racing to seal a last-gasp rescue of Debenhams this weekend in a dramatic intervention that could save up to 12,000 jobs.

The Frasers Group tycoon has revived his interest in taking over the struggling department store chain at the eleventh hour. The move could save Debenhams from liquidation: the 242-year-old group had seemed set to disappear from the high street for good after JD Sports withdrew from the running to buy it from administrators last Tuesday.

Ashley’s group, which owns Sports Direct, and advisers to Debenhams are trying to thrash out a deal that could value the chain at more than £200m, depending on how much stock is left. Frasers would operate Debenhams’ 124 stores under 12-month licences.

https://www.thetimes.co.uk/edition/b...hams-k2gzlw2d0

[BenMcr]

Originally Posted by 1andrew1

Some potentially good news.

https://www.thetimes.co.uk/edition/b...hams-k2gzlw2d0

Based on what happened when he took over House of Fraser, I wouldn't hold out much hope.

https://www.manchestereveningnews.co...irect-17439200

But inside, the cherished department store, once synonymous with sophistication, high-end brands and a top-notch customer service, looks like it's seen much better days.

[1andrew1]

Originally Posted by BenMcr

Based on what happened when he took over House of Fraser, I wouldn't hold out much hope.

https://www.manchestereveningnews.co...irect-17439200

That was a year ago. Since then, I believe that things have improved and upmarket brands have returned. Understandably, there has not been a comparable store review this year.

I believe Debenhams has a £400m online business so that should have a future, whatever happens to the stores.

[Sephiroth]

Reading House of Fraser is still very good.

[1andrew1]

Originally Posted by 1andrew1

Debenhams (unlike Arcadia) had a fairly successful online business. I wouldn't be surprised if this is snapped up.

Boohoo set to acquire Debenhams brand

Cut-price deal could result in closure of retail chain’s remaining department stores

Online fashion retailer Boohoo is set to acquire the Debenhams brand in a cut-price deal that will result in the closure of the group’s remaining department stores, according to two people with knowledge of the transaction.

They said that a transaction could be announced in the next few days.

https://www.ft.com/content/7782098d-...4-9e5484aa623c

[heero_yuy]

Looks like the deal is now done:

Quote from The Sun Money:

Online retailer Boohoo has bought the Debenhams website and brand in a deal that will shut all 118 remaining stores and cut 12,000 jobs.

As part of the £55million deal, the troubled department store will relaunch as an online-only operation from next year.

Debenhams announced its business would be wound down in December 2020, in a move affecting 124 shops and 12,000 jobs.

A few weeks ago, Debenhams then confirmed six stores, including its flagship Oxford Street shop, will permanently close.

The retailer's stores are currently shut due to lockdown rules, but shoppers can still purchase goods on its website.

Once Debenhams stores reopen after lockdown, the retailer will continue to clear stock in its shops while the website will be operated by Boohoo.

[1andrew1]

Originally Posted by heero_yuy

Looks like the deal is now done:

Yes.

Looks like ASOS will end up doing something similar with Arcadia (Top Shop, Top Man and Miss Selfridge) leading to all the outlets closing.
https://news.sky.com/story/asos-conf...rands-12198242

[Sephiroth]

All this is well overdue. The gradual decline of the high street was a matter of human reaction to the web, especially magic that Amazon does with range and delivery.

I might be wrong, but human psychology suggests to me that some retail centre experience is required so as to allow people proper sight of obvious items such as furniture, lighting, kitchen machines etc. Probably also clothes. Which means there is a last-man-standing race that will prolly be won by M&S and John Lewis. They will also prolly provide concessions to various deserving retailers who will dismantle their store operations.

CV has just brought the demise of the high street to a swift procession. The landlords must be shitting themselves, especially if they're still paying for the shopping centre or whatever.

Oxford/Regent Street is another matter. It is a tourist's shopping magnet that seems to me to be doomed - Oxford Street more so than Regent Street. Loss of tourism brings problems for attractions, airlines, hotels and so on.

Politicians don't seem to me to be the right people to sort this out!

Off topic post removed.

[heero_yuy]

Quote from The Sun. Money:

ASOS has bought Topshop, Topman and Miss Selfridge from Sir Philip Green's Arcadia Group in a deal that is expected to permanently close 70 shops.

It comes after Sir Philip Green's retail empire collapsed into administration in November following "severely impacted" sales.

ASOS is paying £295million for the brands plus leftover stock, with the takeover also including leisurewear range HIIT.

But the deal doesn't include the physical shops, which means 2,500 retail staff are at risk of redundancy.

ASOS has agreed to take on 300 people within the Arcadia Group business, including buyers and designers.

The websites for Topshop, Topman and Miss Selfridge will remain open until the deal is completed at the end of the week.

After this, each brand will move over to the ASOS website and customers trying to access these websites will be redirected to ASOS.

More brands move to exclusively on-line.

[tweetiepooh]

But there is and should be a place for real retail space.

When you need that item now, not tomorrow.
When you need something to exactly match something else either by colour, size, measurement - e.g. you need a bolt to fit nut and you don't know much about the nut, colours can look different in different lights.
You need something to suit you - knives/pans for example - I want weight, balance etc to suit me so try them out get it right first time.
You want to discuss with "experts" and get what you need not just what you want.
You need things to fit you - shoes are good example - I have wider feet and a high instep so shoes can be hard to find that really fit well.
Sometimes it's nice to have the social aspect of physically going out - the actual shopping is only part of the experience - enjoying lunch/coffee out as well.

[Sephiroth]

Originally Posted by tweetiepooh

But there is and should be a place for real retail space.

When you need that item now, not tomorrow.
When you need something to exactly match something else either by colour, size, measurement - e.g. you need a bolt to fit nut and you don't know much about the nut, colours can look different in different lights.
You need something to suit you - knives/pans for example - I want weight, balance etc to suit me so try them out get it right first time.
You want to discuss with "experts" and get what you need not just what you want.
You need things to fit you - shoes are good example - I have wider feet and a high instep so shoes can be hard to find that really fit well.
Sometimes it's nice to have the social aspect of physically going out - the actual shopping is only part of the experience - enjoying lunch/coffee out as well.

Which, I suspect, M&S and John Lewis (plus possibly or two others like Wilko) are planning on a last man standing basis.

Imo, there will be a complete reorganisation of the high street. For example, convenience stores will continue, and they will serve converted accommodation. The likes of John Lewis could do what M&S have done - which is to incorporate Waitrose into their stores. Stuff like that.

[tweetiepooh]

I still think we need the small independent traders. Those that know the local area, know local product where relevant, can do the value add they need to to differentiate. So I may still get a PC made by local shop even if it costs a bit more as I know where to go if something goes wrong or I need advice.
I still want to go to a real archery shop where I can try stuff out on their range before I buy it and make sure I'm buying the right stuff for me.

I feel that what is needed now is for landlords and councils to reduce and even cancel rent/rates for some traders/retailers especially where they can't move on-line. Landlords could take advantage of closures to do work needed without disrupting business and still have hopefully good tenants.

John Lewis is a bit of an exception as they do have well trained (and via their bonus scheme, motivated) partners but other large stores often had less good staff and offered the same stuff as you get on-line cheaper - no value add. If you read Which? survey of retailers you can probably spot the ones that will survive at least among the nationals. Those that fit to "local independents" are harder but they are the ones I really want to carry on. (They don't normally fit the models of the large retail centres though.)

[heero_yuy]

Originally Posted by tweetiepooh

I still think we need the small independent traders. Those that know the local area, know local product where relevant, can do the value add they need to to differentiate.

I think you're right. The high street of the future is going to be less of a clone of every other high street but much more varied.