The retail industry is struggling at the moment and has been for the past few years. This is due to more and more people buying clothing online due to time restraints, ease and most of the time you can get cheaper prices and better deals online. Consequently physical stores are unable to compete with shops due to paying high street rent and distribution costs to stores.
A recent example of this is Fenwicks, a luxury department store. They have announced plans to modernise their current structure and centralise their Human Resources, I.T and Finances at their flagship base in Newcastle. They are consulting their staff members as their stores currently operate on a autonomous basis, possibly resulting in job losses.
However, another large retail name has announced plans of closure to their online store, BHS closed all of its physical stores, rebranded and began trading again online in 2016. The company had recently reported that sales were rising and therefore the closure came as a shock to the industry. The Qatari owners are ‘focusing on franchising BHS international’ and 18 members of staff will be made redundant.
The store closures reflect the worldwide dependency on technology, many people chose to shop online as it it more convenient to them and in many cases, the availability is better online.