Next seeks stores rent cuts after profits slump by 8%
The grassroots revolution that’s reviving shopping
FASHION chain Next is to demand rent reductions on hundreds of stores after profits fell 8% to £726million.
Leases are up for renewal on 240 of its 524 branches in the next three years and boss Lord Wolfson said if the costs did not fall “we will go”.
The fresh high street blow – after the collapse of Toys R Us and Maplin – came as Prezzo agreed a deal with creditors in
THREAT Next boss Lord Wolfson
which 94 of its 300 restaurants will close with 500 jobs said to be at risk, though many staff will move to other branches. Next said 2017 was “the most challenging year we have faced for 25 years”. Lord Wolfson blamed a combination of rising costs, changing shopping habits and duff buying decisions for the slump in profits. Sales in Next’s online arm are set to overtake those in its stores in the coming 18 months.
IT’S carnage on the high street as big brands cave in to online stores but small independent shops are leading a fight back.
And they are harnessing the internet to help – even though it is blamed for the decline of chains such as Toys R Us and Maplin.
Campaign group SaveTheHighStreet.org has already revived one suburb and plans to spread its survival blueprint across Britain.
In Barnes, South West London – where 90% of shops are sole traders – business is booming.
The Jewellery Shop
Sharon Dale’s four year-old business Sharon’s Stones was on its knees and heading for closure at Christmas.
“I’d hit rock bottom and was ready to call it a day, she says.
But a meeting with the Save The High Street team has breathed life back into the business after Sharon, 60, signed up to the free initiative.
They pinpointed areas for improvement such as online presence, social media, running jewellery workshops in the store and setting up a loyalty card scheme.
Inspired by her new skills, vintage jewellery expert Sharon said: “For fun, I bought a pink doughnut, decorated it with pearls and posted it on Instagram.
“Out of nowhere I got a call from someone who had seen it and wanted to buy pearl earrings.”
The Fashion Boutique
Italian designer Marco Tripoli, 49, opened his elegant boutique seven years ago and, while his business is a hit locally, he wants to give his brand a bigger stage.
He said: “I do have a website, but it needs a major overhaul and this is where Save The High Street has helped ”.
He is using the organisation’s artificial intelligence online assistant called Jo to boost trade.
Jo has formed a plan of action such as checking and updating reviews, getting listed on relevant websites, and ensuring there is enough stock. He now plans Marco Tripoli pop-up shops in London, re-launching the website for international customers and a local fashion show called Breakfast at Tripolis.
“I’m hoping 1,000 will come for a glass of Prosecco,” he said.
The Lingerie Store
Marie Truelove opened bra and knickers store True Love 10 years ago and has added swimwear and beach accessories to her range. But the 50-year-old admits it is a constant battle to stay a step ahead of the opposition.
“I’m lucky as this is a destination shop where women will come for fittings and advice,” she says .“But Save The High Street have advised on how to improve customer experience and think about more collaborations.”
So she teamed up with a nearby pilates studio and offered gym and leisure wear. And, after putting products on Instagram, she has even shipped bras to New York.
The Food Shop
Business partners Richard Lane and Sally O’Gorman opened Gusto and Relish 18 years ago.
The traditional cheese, wine and homemade food experts have been given a plan to increase their online presence, update their website and improve their Google ratings to move up the list when shoppers use the search engine.
Richard said: “We’re also going to look at a delivery service and setting up a loyalty card scheme.”
The Vape Store
Andy Logan, 39, runs Vape Emporium. He has also launched a loyalty scheme and runs tasting events. Andy said: “Just selling products isn’t enough. “We want to give shoppers an experience where they can relax in a lovely atmosphere with good music and have a digital presence so they know we’re here.”