As the department store Debenhams plunged into liquidation, the high street took a huge blow with a loss of 124 stores and 12,000 jobs. So what went wrong? BeComAware explore 3 things that went wrong with Debenhams.
1. Branding – Debenhams have been criticised for lacking a clear brand proposition in the market, failed to attract younger audiences and were not adapting fast enough to the changes in fashion demands.
2. Physical store expansion – Debenhams continued to open ‘too many’ physical stores and failed to predict the shift to online shopping.
3. Debts – Physical store expansion comes with large rents, rates and overheads, along with onerous lease liabilities which in turn made it difficult for Debenhams to keep up with costs.