Secrets of stores bucking trend

As House of Fraser announced it is to close 31 of its 59 shops, we explore the challenges faced by department stores in the 21st Century

Once the major attraction on high streets across the UK, the department store’s star appears to be fading.

The latest casualty of the shift in shoppers’ habits is House of Fraser, which announced that it intends to close 31 shops, affecting 6,000 jobs, as part of a rescue deal.

Chairman Frank Slevin said the industry was undergoing “fundamental change” and the company “urgently needs to adapt”.

His is not the only chain struggling to survive. Debenhams and M&S both plan to shut stores as profits fall, and BHS spectacularly collapsed in 2016.

However, the downturn is not universal. Stores such as House of Bruar near Blair Atholl, Jarvis Brothers in Forfar, and Beales in the former Mcewens building in Perth are bucking the trend and prospering.

So what’s their secret? How can department stores tempt customers away from the convenience of online shopping or the fast fashion fix offered by the likes of Primark?

Tony Brown, chief executive of Beales, puts it down to location and focus. “We trade in market towns so try to pick our locations where there’s a need for a local department store,” he said.

“We try to tailor the ranges in our stores with the community and socioeconomic group in mind, while the likes of House of Fraser and M&S have generic ranges. We look at stores in detail; we look at the micro without losing focus.”

Family-run Rejects department store in Kirkcaldy is another success story.

Owner Anne Mcphail reckons great customer service and knowledgeable staff are key.

“Shopping is still one of our national sports and is loved by many, especially when we offer fun events in-store like competitions and workshops,” she said.

Ewan Macdonald-russell, head of policy and external affairs at the Scottish Retail Consortium, says department stores are a “microcosm” of what’s happening to the broader retail industry and puts their decline down to a mix of technology, high business rates and oldfashioned layouts.

“People like to compare prices on the move using hand-held devices,” he said.

“Department stores are hit because they have such a big range of products available in other places. That puts pressure on them to run really slim margins. Because of size and placement – many are on the High Street – business rates and costs of employing staff are also a problem.”

The shops that do well tend to be those who have looked at “tech” measures, he said.

“Some have augmented reality campaigns which give shoppers insight into how products will look at home. It’s about added value.”

There’s also the fact many older buildings aren’t set up for modern retailing. “It can be hard to adapt and make changes to these shops while conserving them,” said Ewan.

“Those bucking the trend do so by having something different and distinctive to offer – the unique customer experience. It might be great hospitality or the fact there’s great coffee and cake.”

Tough though the market may be, he insists the decline of some chains need not spell the death knell for department stores.

“Things are changing but people will continue to shop. Adapting is a hard thing to do. Between 2008 and 2015, 1800 shops closed across Scotland. There are fewer shops and the shops that are there need to be ready for the future. That’s a big challenge.”

gritchie@thecourier.co.uk