The High Street is Still Suffering

It seems that every few months there is a news story concerning another big name on the nation’s high streets going to the wall. This last month it was the fashion giant Joules, a retailer that has seen its fortunes waver in the face of online spending, a global pandemic and a recession.

Indeed, since the recession of 2008, it seems that retailers have been less of a certainty on the UK’s high streets. Names like Staples, Maplin and Toys R Us have been examples, even larger brands such as Debenhams have been severely curtailed as a presence and familiar sight on the nation’s retail parks and main thoroughfares.

So why Joules? And why now?

Joules has appointed Interpath Advisory to handle the administration process, though it is continuing to remain open and to trade, albeit on revised terms, while a buyer is sought.

Joules mainly sells women’s, men’s and children’s clothing, shoes and accessories. The Leicestershire-based company, which has 132 shops, fell into administration after failing to secure emergency investment.

The problems first surfaced last Christmas when shortly before it sounded a profit warning, Joules was struck with supply issues.

Like many industry contemporaries, rising freight costs, stock delays and labour shortages hit both trading and profits.

Not only did this affect the all-important Christmas period badly, it also had a knock-on effect as the delayed arrival of new stock led to more discounting into the new year.

2022 has also seen the much talked-about cost-of-living crisis, which has affected even the most middle class of Joules’ customer pool. The thought of overspending on luxury clothing at a time where many are struggling seems ludicrous to many.

With a healthy stock of high street locations and a website that up until recently performed well, Joules has reportedly got a decent amount of interest from parties who could possibly take it forward and change its fortunes.

The fact remains that the high street is not an easy place to do business these days. Fortunes as we can see here can turn on a sixpence and those who do not adapt fast enough or are caught by unprecedented trading conditions such as this may well start to suffer and fall by the wayside.

The effects of the internet and ecommerce have long been warned about, but it is only now that the processes and supply chains have been able to match this. Disruption to those supply chains is now threatening some areas of this modern phenomenon, so more might need to be done to save retail in general.

Are you a retailer in financial strains? Talk to one of our team today.