Online retailers to snap up struggling High Street brands

Boohoo is expected to close Debenhams’ shop foot print permanently and focus on growing the assets via online.

Debenhams has 9 pure-play websites and Boohoo plans to re-launch them on its platform by Q1 FY22. Debenhams has three fulfilment centres which Boohoo will take over.

ASOS is in talks to talks with the administrators of Arcadia Group to buy the Topshop, Topman, Miss Selfridge and HIIT brands.

It is also expected to focus solely on the online channel of Arcadia if successful.

Figures released recently by the Office for National Statistics (ONS) make grim reading for retailers, revealing a slump of -1.9% in the volume of sales during 2020 when compared to 2019. That is the largest year-on-year fall on record. In contrast, the value of online sales was up 46.1% compared to 2019. Online sales were up 61.4% compared to December 2019 with online food up 126.4% YOY.

David Jinks MILT, head of consumer research, ParcelHero.com said: “Over the last year many of our favourite stores have vanished from our towns to become online only, including Oasis and Warehouse, which were also snapped up by Boohoo, as well as retailers such as TM Lewin and Hawkins Bazar. 

"Only last month the plus size clothing specialist Evans’ brand and web site were snapped up by Australian online fashion store City “Chic from the struggling retail chain Arcadia. The physical stores will be left to wind down. And there’s further bad news in store-for stores, as the online only retailer ASOS looks to be the last man standing in the bid to buy remaining Arcadia brands Topshop, Top Man and Miss Selfridge, again without taking on their 150 High Street stores.

“We believe the pandemic has simply hastened the collapse of town centre stores, rather than caused it. The rise of online shopping at the expense of the High Street has been obvious for some years. In 2017 ParcelHero predicted in our report, 2030: Death of the High Street, that 40% of all retail trade will be online by 2030, and, in fact, by November 2020 31.4% of all retail sales were already being made online, so we’re well on track to see that prediction come true.

“After a rocky start at the beginning of Lockdown 1.0, home deliveries have seen rising levels of customer satisfaction, they are now seen as safer and more convenient than a trip to the town centre.”