Debenhams, the once-dominant department store operator in Britain, is set to bid farewell to the UK high street on May 15. This closure marks the end of a 200-year presence in the UK retail industry for the iconic brand. As the company’s remaining stores prepare to close their doors, Debenhams will shift its operations entirely online under the ownership of Boohoo Group.
Just a little over a year ago, Debenhams held the coveted title of the largest department store operator in the country. However, due to mounting difficulties, the company will be closing 52 stores on May 8, with the final 49 locations shutting down on either May 12 or 15. This transition to an exclusively digital business will unfortunately result in the loss of around 12,000 jobs.
The origins of Debenhams date back to 1778 when William Clark first opened a store in the bustling London district of West End. It was only 35 years later that William Debenham joined the business, leaving a lasting impact on the brand. Not too long ago, Debenhams had ambitious plans to expand its store count to approximately 240, even going as far as opening a new store just four years ago. However, the company has faced significant challenges in recent years that have led to this unfortunate outcome.
A private equity takeover and subsequent listing on the stock market were unable to address the underlying issues plaguing Debenhams. As a means of generating funds, the company resorted to selling and leasing back a number of its properties. Unfortunately, this move led to rising costs at a time when traditional brick-and-mortar stores were already struggling to compete with the rise of online shopping. Debenhams had to file for administration twice, with the most recent filing occurring just over a year ago.
The closure of other department store businesses in recent years, such as Beale’s, as well as the shutdown of certain branches of John Lewis and House of Fraser, have dramatically transformed the landscape of UK department stores. These traditional retail giants are no longer a staple in every major high street, shopping center, or town. However, there are still a few stores, like Selfridges and Harrods, that have managed to thrive despite these challenging times. Although the pandemic has certainly impacted their operations over the past year, they have managed to weather the storm.
In the realm of department stores catering to a more accessible market, John Lewis and House of Fraser remain the two major players in the UK. However, both are faced with significant challenges within the current retail climate. They will need to adapt and innovate in order to survive and thrive in a changing industry.
(Link 1: Selfridges)
(Link 2: Harrods)
