Britain Is White, But A Dark Day For High Street Retail!

hight street closures
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It has been a challenging week for Britain with the ‘Beast From The East’ storm coming from the East and now Storm Emma coming from the West.  It has dropped snow across much of the country, closed schools, businesses, public transport and much more.

As much as Britain’s unpreparedness for snow makes it a laughing stock to our American and Canadian cousins it has also been a very tough week for high street retail, with both Toys R Us UK and Maplin entering administration yesterday.

Toys R Us

News of the U.S. entity being in trouble surfaced in September 2017 and it was unclear how this would effect the UK business.

toys r us logo

Well that has now been made clearer as on the 28th February Toys R Us UK entered administration and “An orderly wind down” has begun as they have failed to find a buyer.

This is another clear high street casualty where the failure to adapt to customer expectations and the growing online dominance has been another scalp for the online eCommerce crowd.

“Toys R Us has fallen foul of a perfect storm hitting bricks-and-mortar retailers across the board…Rising costs from the National Living Wage, apprenticeship levy and inflation, combined with ongoing pressure on consumer spending and the continued rise of the internet are hitting retailers with a big High Street presence hard.” Julie Palmer, Regional Managing Partner, Begbies Traynor

I personally did visit my local Toys R Us store a few months ago, and I can honestly say that the experience was disappointing.  For a store who’s target audience is children and new parents the whole experience felt bland, boring and far from interactive.

For a place whose motto used to be “It’s a Magical Place…” the 2018 reality was actually far from that.

Maplin

Just a few hours after the Toys R Us announcement came the news that Maplin would also be entering administration as they too had also failed to secure a buyer to take them on.

Maplin has 217 stores across Great Britain and over 2,300 staff. PwC who have been appointed as administrators have announced that all staff and stores will remain unaffected for the time being whilst they explore all opportunities to find a new owner.

“The challenging conditions in the UK retail sector are well documented…Like many other retailers, Maplin has been hit hard by a slowdown in consumer spending and more expensive imports as the pound has weakened,” Zelf Hussain, Joint Administrator and Partner, PwC

If no buyers can be found for either Maplin or Toys R Us, this will result in a closing of 222 combined stores and just under 5000 jobs lost.

What are your thoughts on the continuing struggles of the high street and their failure to adapt to the pressure of online retailers? Head over to our Facebook Discussion Group or use the comments section below.

For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

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