Experts offer retailers key advice as August store closures loom
August is set to see many more high street stores closing down across the UK, as retailers continue to struggle with competing in a difficult economic climate. Among these, huge brands such as Game, Poundland, Holland and Barrett, and River Island will close their doors in various locations this month.
As more stores shut down nationwide, the experts at Liquidation Centre have analysed search data to reveal which former brand names consumers want to see back on our high streets, as well as providing advice for current retailers on how to stay relevant in a competitive market from Richard Hunt, Director at Liquidation Centre.
Top Ten High Street Brands Consumers Want Back
Rank | Retailer | Average Monthly Search Volume (UK) |
1 | Debenhams | 499,000 |
2 | Dorothy Perkins | 65,000 |
3 | Toys R Us | 61,000 |
4 | Cath Kidston | 35,000 |
5 | Thorntons | 32,000 |
6 | Mothercare | 28,000 |
7 | BHS | 22,000 |
8 | Woolworths | 19,000 |
9 | Miss Selfridge | 9,500 |
10 | Blockbuster | 8,330 |
*The full data and methodology is available to view here.
Debenhams
Debenhams is the retailer that most consumers want to see back on their highstreets, with a huge 499,000 average monthly online searches. Boohoo bought the brand and its website in 2021, but didn’t buy its high street stores, which eventually closed down. Fans of the brand may be pleased to hear that Boohoo has changed its name to Debenhams, reviving the popular 247-year-old brand. Unfortunately though, physical stores are not expected to make a comeback, as the chief executive stated it will be ‘Britain’s online department store’.
Richard Hunt comments: “The combination of failing to adapt to shifting consumer habits towards online shopping alongside the financial impact of Brexit and the pandemic contributed towards Debenhams financial strain. However, their issues began years prior to these events, with the company carrying unsustainable debts due to poor financial decisions.
Their online-only comeback will be exciting for many fans, but it also serves as a stark reminder of their failure to compete effectively on the high street amid a changing market.”
Dorothy Perkins
The data suggests that consumers want to see Dorothy Perkins back on their high streets, as the brand amasses 65,000 UK monthly searches on average. The Debenhams brand was acquired by Boohoo group in 2021, excluding the physical stores, which were lost. This followed the collapse of its former owner, Arcadia Group, which fell into administration in 2020. As a result, all of the brands previously owned by Arcadia were sold off by administrators to online retailers including ASOS and Boohoo in 2021.
Hunt states: “Dorothy Perkins, part of Arcadia Group, is another example of a traditional retailer acquired by online giants like Boohoo. Despite undergoing a CVA (Company Voluntary Agreement) to repay debts and avoid liquidation, the company’s failure to compete with fast-growing online retailers, combined with a changing market landscape and high overheads, led to crippling financial issues, which ultimately led to the downfall of the business.
Toys R Us
The well- known children’s store Toys R Us ranks in third place, with an average of 61,000 monthly searches. The company went into administration in 2018 and closed its stores as a result. The company had been facing a £15m tax bill, and poor sales made it impossible for them to make the payment. Additionally, the growth and popularity of technology among children was something that the brand could not keep up with.
Richard Hunt explains: “Toys R Us seemed to fail to move with the times. As children’s interests began to shift towards more tech-related items, the stores failed to adapt and capitalise on this trend. They were also priced out of a very competitive market, with other brands offering the same quality branded toys at a lower price. Additionally, reports pointed to dull, outdated store interiors that lacked the excitement and appeal once central to the Toys R Us experience. More enticing and exciting options become available, leaving the brand behind.
Richard Hunt, director at Liquidation Centre offers expert insight on the demise of household brands, and key lessons for today’s retailers on how to stay relevant in an evolving and competitive market:
“The current economic climate poses increasing risks to businesses, especially those in the retail sector. It is much easier to lose consumers than to retain them, which is why regular market research and competitor analysis are so essential. .Staying ahead of the curve as conditions evolve is critical to long-term survival.
“As we’ve seen , poor financial management and decisions have contributed to the downfall of several once-iconic household brands, proving how crucial it is to have effective financial strategies and management in place.”
“For businesses facing financial strain, the first step is to thoroughly assess all revenue streams and expenses. Exploring debt management options and cutting unnecessary costs where feasible is key. This might include negotiating with creditors, landlords, or suppliers to ease financial pressure and begin recovery.”
“If a business reaches the point where liquidation becomes a risk, swift action is vital. Seeking advice from a licensed insolvency practitioner (IP) can help clarify your options and potentially avoid insolvency altogether.”