Blog: Leonie BarrieUK high street takes a hit

Leonie Barrie | 30 June 2011

There's no doubt that times are tough on the UK high street, and if evidence was needed then look no further than today's news that department store chain TJ Hughes has gone into administration, putting 4,000 jobs at risk. Its decision comes hot on the heels of a similar move by women's fashion retailer Jane Norman where, despite the sale of 33 of its 94 stores to fellow retailer Edinburgh Woollen Mills, more than 1,000 jobs still remain under threat.

Of course the combined effect of tough trading conditions, rising debts and high rents are not unique to fashion retailers. Indeed, in the last few days chocolate firm Thorntons has said it is closing 120 stores, furniture retailer Habitat was placed in administration, and the owner of the Comet electricals retailer is mulling a sale.

But clothes are among the first purchases to go when shoppers - themselves facing low wage growth, a tight squeeze on disposable income, and concerns about job security - cut back on non-essential items in order to pay for higher food and petrol prices instead.

And even chains like Debenhams, which today bucked the high street gloom to post a 3% rise in like-for-like sales so far in its second half admits its performance has come at a cost: cutting prices and increasing promotions to drive revenues have eaten into gross margins.

Worryingly, observers are finding it hard to be optimistic about any respite over the next year either, warning the underlying problem of low consumer confidence will be hard to fix.


BLOG

Digital pieces of the fashion supply chain take shape

The digital pieces of the fashion supply chain puzzle are starting to come together, according to executives at the recent Texprocess apparel technology trade show in Frankfurt, Germany....

BLOG

Latest supply chain leaders?

Swedish fast-fashion retailer H&M, Zara brand owner Inditex, and sportswear giant Nike are not only among the world's leading brands, they also have some of the best supply chains too, according to a ...

BLOG

Finding a solution to the sustainability problem

The key message at this year's Copenhagen Fashion Summit was that the global apparel and textile industry needs to take a holistic view on how it tackles sustainability and responsible sourcing – with...

BLOG

Industry welcoming move to renegotiate NAFTA

The US textile industry has welcomed President Donald Trump's decision to renegotiate NAFTA, saying it is in America's national interest to modernise the trade agreement....

just-style homepage



Forgot your password?