British department store chain Fenwick has announced the closure of its iconic Bond Street location in London. The decision follows the sale of the building to a property firm for an estimated £400 million, signaling the end of a 130-year era for the store.
Initially, there were talks of Fenwick considering a partial conversion of the site into offices, a move similar to neighboring retailers John Lewis and M&S. However, the company has ultimately decided to shut down the store entirely. A visit to the store reveals signs of a long-term decline, with reduced sizes in departments like menswear and a small presence in the handbags category. Lazari Investments has acquired the five-storey property and will allow the store to continue operating in its current form until 2024.
Fenwick chairman, Simon Calver, admits that the decision to close the Bond Street store was difficult but emphasizes that it is the right move for the business. The proceeds from the sale will provide the company with a strong financial foundation, ensuring its longevity for years to come.
While the closure of Fenwick’s Bond Street store marks the end of an era, the company’s flagship store in Newcastle remains its pride and joy. Established in 1882, Fenwick has closed stores in various locations over the years, including Leicester and Windsor. With only eight stores remaining, Fenwick has also expanded its presence online with the launch of a webstore in 2019.
Financially, Fenwick reported sales of £240 million in the year leading up to January, although it incurred a pre-tax loss of £5 million. By selling the Bond Street property, Fenwick aims to improve its financial stability and concentrate on its remaining stores and online operations.
Despite the closure, Fenwick believes that this strategic decision will enable the company to adapt and thrive in the evolving retail landscape. With a renewed focus on its flagship store in Newcastle and its webstore, Fenwick is positioning itself for continued success in the future.
To learn more about the retail industry and its challenges, you can visit these useful links:
BBC – The future of British retail: fewer shops, more warehouses?
Retail Gazette – Reimagining the Future of the High Street
