Let’s not be surprised. I keep banging on about – how shopping habits are changing. How we, as individuals have more choice – more flexibility and more influences – that steer us to make certain choices.
So there shouldn’t be any surprise, when Debenhams will report an annual loss of almost £500m for the year to 1st September.
Along with the full year loss – there’ll be store closures – of around one third of it’s 165 stores, over the next five years.
There’ll also be job cuts. Yep – around 5,000 are to be affected with restructuring plans – over five years.
Shares have fallen by more than 80% over the last year.
Bal, that’s not good. Is it because we’re shopping on-line?
Partially, yes. Debenhams digital platforms are said to be trading strongly. So you have to ask the question – why isn’t there more investment in those platforms? – Why isn’t there more money in the ‘Bricks & Clicks’ model?
Bal, what’s the ‘Bricks and Clicks’ model?
It’s a model where you have a strong mix of actual stores – bricks… and a digital presence…clicks. Many stores are doing this very well. Take the retailer Next. They have a good ‘Bricks and Clicks’ model in place. In fact, they started off with the catalogue (back in the day!) – moved that quickly to an on-line platform, made ordering easier and fast forward to today… you can click and collect on the same day!
It just doesn’t seem that young people have the time, to spend in large retail stores… walking around, looking around… when it can be done quickly, easily and efficiently from home…. via the phone or tablet. However, there will be times, maybe around Christmas (seasonal) or Birthdays (occasions) when some ‘retail therapy’ of walking around a stores is needed.
It’s all about using your data. Understanding how your customers are buying. How their habits are changing. Making it easier for them. And then implementing….