Last week, Ted Baker became the latest casualty of the High Street, announcing it was pulling the plug on its remaining UK stores after a series of financial difficulties left the brand struggling to bag support and stay afloat in the challenging market.
However, Ted Baker isn't alone. Several other big names in the fashion industry have fallen fate to similar, including UK fashion retailer Superdry. In May, Superdry asked its shareholders to approve a new "restructure plan" that included closing 25-30 European stores in an effort to achieve financial stability.
In the same vein, Swedish fashion retailer H&M confirmed in January to Just Style that it plans to close 28 stores in Spain as part of a strategy to ensure it has stores in the "right locations" to meet customer expectations.
The high rates of store closures highlight the significant shifts and challenges within the fashion industry. Current geopolitical and economic conditions are already weighing down the market as two simultaneous conflicts continue in Israel-Gaza and Russia-Ukraine.
Meanwhile, the latest results from the British Retail Consortium indicate that climate change has a big part to play in dictating fashion shopper habits, with a gloomy summer dampening consumer spend.
Interestingly, the online market continues to outperform birck-and-mortar stores, with expected growth of 6.7%, reaching a market penetration of 26.9% from 2024, according to GlobalData.
GlobalData's '2024 winners and losers in the global apparel market' report points to brands like ultra-fast fashion Shein as winning market share, thanks to low prices and a diverse product offering.
Another brand gaining ground is Inditex's Zara, which the report credits with superior fashion credentials and an elevated marketing strategy. Zara owes its popularity and success to its enhanced multichannel capabilities with its app now providing customers with convenient in-store features such as fitting room bookings and automated online order collection points.
These dynamics indicate a profound transformation within the fashion industry driven by technology, shifting consumer behaviours, economic factors, and a heightened focus on value for money.
The industry is clearly moving towards a more digital-first, experience-driven future, where traditional retail strategies are being redefined. One thing is certain: brands and retailers that fail to keep up will fall out of favour with consumers.
Top news stories on Just Style last week…
Explainer: What’s next for Ted Baker, who will win from its downfall?
Ted Baker's exit from the UK high street leaves a void in British retail and sparks fierce competition for its abandoned market share. Just Style investigates who will benefit most from its recent demise and whether we could see it return as an online pureplay in the near future.
Ted Baker online pureplay future uncertain as final UK stores close
UK fashion retailer Ted Baker is closing its final UK stores this week and an industry expert tells Just Style exclusively it remains to be seen whether the brand will remain as an online pureplay or disappear altogether.
Fashion brands urged to conduct responsible Bangladesh sourcing
Nine fashion industry organisations have outlined joint recommendations for responsible apparel sourcing in Bangladesh amid reports of unpaid and reduced wages.
Explainer: Impact of Kamala Harris’ economy, climate policy for US apparel
From rising corporate taxes to new climate regulations and trade policies, industry experts weigh in on how US Democratic presidential candidate Kamala Harris' economic agenda could affect the US apparel industry if she were to win the race in November.
Goodwill unveils circularity pilot results at sustainability summit
Goodwill Industries International (GII) has shared the results of a two-year circularity textile pilot project while introducing a new traceability study at its first-ever Sustainability Summit in Washington, DC.
Explainer: Walmart’s JD.com exit and what it means for apparel
Multinational retailer Walmart tells Just Style it is looking to offload its stake in Chinese e-commerce giant JD.com, a move that could reshape both companies' strategies in China and could spark new opportunities for Walmart's apparel business.
Explainer: Why are virtual wardrobes growing in popularity?
Virtual wardrobe apps are gaining traction with fashion consumers who want to make better use of their existing purchases for both financial and environmental reasons.
Bangladesh flooding likely to affect apparel production, export
Severe flooding in Bangladesh is likely to impact apparel production and delivery, local industry experts have warned.
