‘We just can’t carry on losing these big brands one by one’
After Laura Ashley became the latest high street giant to announce closures, Richard Ault asks what this means for its stores across this region
RETAILER Laura Ashley has become the latest high street giant to announce a number of store closures – sparking concerns over the future of branches in North Staffordshire and South Cheshire.
The fashion retailer has announced it will close around 40 shops as its new chairman pushes ahead with a fresh vision for the brand, which includes expansion in China.
Now there are question marks over its stores in Newcastle, Congleton, Crewe and Nantwich.
Eddie Leligdowicz, chairman of Newcastle Business Improvement District, said: “We can’t carry on like this – losing these big brands one by one.”
Mr Leligdowicz, who is also a Mcdonald’s franchisee in the town, said: “Laura Ashley is like other major brands – they bring customers in.
“It is a popular brand with many shoppers, both male and female, not just for fashion, but also its home products.
“If it was to close it would be damaging to Newcastle. We are trying to attract bigger names as often as we can, but pressure on the high street is causing some established brands to disappear.
“It reflects the ongoing issues on the high street, the pressure retailers are under, and the need for relevant authorities to respond to that through business rates, or initiatives like business improvement districts.”
Speaking to the Press Association, Laura Ashley chairman Andrew Khoo said he expects to reduce the number of UK stores from 160 to 120, continuing a strategy that has seen 40 retail units close since the beginning of 2015.
Mr Khoo, who took over as chairman of Laura Ashley’s owner from his father Khoo Kay Peng last week, said: “The direction I want to go is to have not so many stores, but maybe the ones we have could be larger. It’s more about showcasing the brand. It doesn’t really matter if they buy online or offline, we just want them to get inspired.”
He added that the group would look at moving staff from any stores which close to the enlarged shops.
Meanwhile, Laura Ashley will roll out bricks and mortar stores in China once it has built a significant online customer base. “We’re moving to Asia in a much bigger way,” said Mr Khoo. “We have a regional office in Singapore, it’s a dedicated office of about 10 people and it’s focused purely on ecommerce into China. Once we get a significant foothold in digital retail in China, we can look at the physical stores rollout.” British retailers have had a difficult year as high street footfall declines and consumer confidence wanes. A number of other big name retailers have announced closures already this year, including Maplin, Poundland and Debenhams.
Last week Sports Direct boss Mike Ashley, left, said November was ‘unbelievably bad’ and warned that many retailers will be unable to take the strain.
Mr Khoo said that Laura Ashley in the UK had seen some promising signs in the run-up to Christmas including an increase in clothing sales, but it has been slow to shift big-ticket items like furniture.
Shopper Ruth Dobson, aged 46, from Alsager, said: “I’ve used Laura Ashley in Newcastle and Crewe and it would be a shame if either of them closed. I use it for things for the home rather than the clothes.
“The branch in Crewe is on the retail park, which is always busy anyway, but I think it would be a big loss to Newcastle town centre.”
Graham Anthony, aged 45, of Madeley, said: “It’s always a shame to see empty shops. I think it would be missed if it closed in Newcastle, and especially in Nantwich.”