News / UK retail's cry for help as another high street giant closes branches

© Philip Openshaw

The UK’s high streets are in critical condition as footfall continues to decline, with another major retailer announcing store closures.  

Rising prices have seen British shoppers reigning-in their spending and, paired with a booming e-commerce market, this has created the perfect storm for the reduced popularity of physical stores. The Loadstar reported earlier this year that Superdry had posted a loss amid the fast-changing retail climate.  

Superdry explained that the consumer preference shift towards online shopping had meant fewer visits to stores and brought “unprecedented challenges”. 

Now luxury fashion retailer Ted Baker is the latest ‘contributor’ to the ‘death of the high street’, closing 15 stores in the coming months, which will lead to some 250 job losses.  

Prior to the GXO spin-off in 2021, XPO Logistics performed contract logistics on behalf of Ted Baker. When GXO was created as the world’s largest listed pure-play contract logistics operator, the contract was transferred.  

XPO Logistics UK and Ireland MD Dan Myers told The Loadstar: “British retail has always been a vibrant and dynamic sector, with retailers having to evolve to meet ever-changing and increasing consumer requirements. 

“The need for the right product at the right price, and crucially,at the right time, has never been more important. Today’s tough environment is no different… Those who adapt to these changes will get it right.” 

According to a British Retail Consortium study, summarising BRC-Sensormatic IQ data from 25 February to 30 March, high street footfall decreased by 1.5% (YoY), retail park footfall decreased 3.5% and shopping centre footfall was up 0.3%. This led to an overall decrease of 1.3%.  

Helen Dickinson, CEO of the British Retail Consortium, said: “Overall UK footfall declined in March as the wet weather kept shoppers indoors… The early Easter meant footfall rose across the UK in the final week of March, particularly in English cities such as Birmingham and Liverpool, but this was not enough to reverse the overall decline.” 

Andy Sumpter, retail consultant for Sensormatic Solutions EMEA, noted that the choppy nature of footfall recovery seen over the past few months indicated that consumer confidence was yet to fully turn a corner. he added: “We may see a bumpy recovery in shopper traffic in the months ahead.” 

Stakeholders in retail are now looking to the government to offer a solution.  

“As we draw closer to a general election, these figures highlight how vital it is for all the parties to include a clear and comprehensive plan for growth in their manifestos. Instead of imposing burdensome costs on the industry, they should focus on reforming business taxes and improving planning policy to help put life back into communities up and down the country,” concluded Ms Dickinson.

Meanwhile, fashion retailer Esprit’s Belgian arm has filed for insolvency, according to WSJ, citing high energy and logistics costs along with lower demand. Its Swiss unit filed for insolvency lat month.