Competition v technology and insolvency
16 May 2016: We have again seen some famous high street brands entering insolvency processes. Some have attempted the rescue route of Voluntary Arrangements and Administrations but will this save them in the years to come and how many more will follow suit?
We can take BHS and Austin Reed, two of the most recent victims in the UK to enter Administration and Aeropostale a leading team brand in the US, enters bankruptcy. Not all brands are able to keep up with the promised next day delivery and glossy home delivered catalogues that entice you into buying. Product ranges and service quality have always been key but, to maintain a strong hold of customers against the competitors, retailers must embrace technology. No matter how good you are right now, you must keep up with the flow and the latest technology and client communications with promotions, vouchers and stock sales.
Other factors that will have an impact on whether retailers remain successful in the changing market conditions are those providing a ‘retail experience’, albeit the need to reconfigure stores, move locations and ensure that seasonal supplies are available on demand. Regardless of your size, our high streets have changed significantly and it’s essential that you consider how you interact with your clients and avoid insolvency in the future.
If you are a retailer or have clients that are retailers and are struggling financially, please contact BRI Business Recovery and Insolvency to determine which solutions are available to help you through these competitive times.