Select Fashion, the affordable clothing chain, is set to close three more stores this year, adding to the twelve locations already marked for closure across the UK. This wave of closures highlights the challenges many brick-and-mortar retailers face amid soaring inflation and the growing preference for online shopping. The latest closures will affect two stores in Bristol and one in Worksop, following the brand’s earlier moves to shutter various locations since entering administration back in 2019.
Owned by Turkish entrepreneur Cafer Mahiroğlu, Select Fashion entered administration due to tough high street conditions, prompting its acquisition by Genus UK Limited. While recent attempts to restructure involved entering a Company Voluntary Arrangement (CVA), aimed at negotiating debts and rent reductions, the retailer's struggle continues. According to recent filings with Companies House, Select Fashion’s CVA continues to affect its operational capabilities.
Details reveal the broad impacts of the closures, particularly for local communities where these stores functioned as key retail spaces. The stores slated for closure include locations like Broadmead and the Broadwalk Shopping Centre in Bristol, both of which have launched “Everything Must Go” sales to clear stock. A recent message from Select Worksop indicated the store would likely close on March 5, prompting customer lamentations about the loss of accessible clothing options.
“Feel so sorry for your shop. It’s the only decent clothes shop left,” expressed one local voicing their disappointment on social media. Such sentiments encapsulate the emotional toll these closures take on communities, reflecting not only the loss of retail options but also jobs associated with these stores.
The trend of closures does not stop with Select Fashion. The retail sector as a whole is experiencing significant decline, with data from the Centre for Retail Research estimating over 13,479 shops, averaging 37 each day, shuttered for good this year. The figures reveal not only the closure of larger chains like Select Fashion but also devastating impacts on independent retailers, as more than 11,341 independent shops have also closed. The data indicates insolvency remains a primary driver behind these closures, challenging the stability of the high street.
Economic pressures remain high, with inflation affecting consumers’ spending habits. A report from the British Retail Consortium predicted increased operational costs for retail businesses, exacerbated by employer National Insurance contributions, estimating the loss of 202,000 jobs could occur within the sector over the next year. The consequences of this turbulent atmosphere can be seen across the retail spectrum, from fashion to home goods. For example, Homebase recently announced the closure of 33 stores due to falling sales and significant financial strain.
Analysts and experts, including Professor Joshua Bamfield of the Centre for Retail Research, warn of bleak prospects for retail moving forward. "Although the outcomes for store closures were not as poor as 2020 or 2022, they remain alarming," he noted. He believes we may see similar, if not worse, closure rates this year. The pandemic has forced many retailers to rethink their operational strategies; hence, chains are seeking to optimize physical locations against the market trend leaning toward online shopping.
Select Fashion, with its nearly four-decade history on the high street, is emblematic of the retailer's struggle. Following recent closures, including branches across England and Wales, the brand's legacy is under threat as it attempts to navigate the increasingly competitive and cash-strapped consumer environment. Stores impacted by the most recent round of closures include: South Shields, Peterlee, Thornaby, Hartlepool, Scarborough, Hull Hessle, Hull St Stephens, Ashington, and Scunthorpe.
Despite launches of clearance sales and efforts to engage shoppers, lasting success seems to elude Select Fashion. The company's dwindling store presence is just one part of the larger narrative describing the chain’s recent struggles. The company’s attempts to restructure through CVA reflect broader trends seen throughout the retail industry, where many brands fight to adjust to rapidly changing market dynamics.
Experts contend the financial strategies pursued by retailers like Select Fashion must evolve to include more flexible storefronts and reduced overheads. Consumer interest is shifting predominantly to e-commerce, and businesses must adapt to meet customer expectations on convenience and pricing. The upshot is plain as fashion retailers like Select are winding down operations when their appeal may already be waning. The high street, as we know it, is possibly on the precipice of irreparable change.
Meanwhile, as Select Fashion prepares to say goodbye to its remaining locations, communities brace for the changing retail environment. Their departure sends ripples through local economies and significantly alters the high street shopping experience for countless shoppers. The enduring sentiment among customers continues to resonate—what is lost are not just stores but cherished community spaces where local fashion was accessible.
With pressure mounting on remaining retailers, the questions arise: Will other brands follow suit, and what does the future hold for our high streets with this trend set to escalate? Only time will tell, but as the outlook remains tenuous, consumers and brand loyalists alike can only hope for some positive shifts amid the ever-evolving high street retail sector.