Richard Saunders, retail partner at Hartnell Taylor Cook, said: “Ted Baker is the latest example of a well-established British brand unable to adapt to a rapidly evolving retail landscape. Whilst e-retail was once portrayed as the villain in the story of the high-street, this is simply no longer the case. Retailers with long-standing and extensive portfolios are struggling to adapt and reinvent themselves, whilst new entrant independent brick and mortar retailers are posed to dominate the market.
“Retailers need to be constantly reinventing, relocating or refitting to align with changing consumer demands, and having an extensive property portfolio makes this difficult and very costly to achieve. Independents with smaller portfolios are simply better suited to thrive.
“Despite what you may read, retail is not dying, it is however in a serious phase of transition, and established retailers with extensive portfolios need to work their portfolios harder in order to survive.”
Nick Drewe, retail expert and founder of online discounts platform,
Wethrift, provides insight into a ‘perfect storm’ of situations that he believes led to the brand’s decline.
“Ted Baker is part of a growing line of British retailers to collapse during the turbulent economic crisis, and is yet another blow to the already fragile UK high street.
“Authentic Brands Group, the parent company that purchased the Ted Baker brand 18 months ago, has attributed losses to the ‘significant arrears’ which were acquired under the holding company, No Ordinary Designer Label (NODL).
“Despite the brand’s current situation being partly due to high levels of arrears described as ‘too difficult to overcome’, Ted Baker must also acknowledge alternative factors that have contributed to its decline over recent years.
“The brand has faced significant instability over the last 5 years. Its founder Ray Kelvin resigned as chief executive in 2019, following allegations of inappropriate behaviour towards staff, which gained huge amounts of unwanted attention and publicity. Following this, the retailer faced significant profit warnings, which were closely followed by the negative impact of the COVID-19 pandemic, placing significant financial strain across the business.
“As well as internal issues with leadership and the impact of the pandemic, the brand has also failed to recognise the shift in consumer demand and spending amidst the ongoing cost of living crisis. Plenty of fashion brands that are at a high price point have struggled to compete during these challenging financial times, as consumers look to cut down on luxury spending and prioritise saving and budgeting.
“Alongside the implications of its high price point, the brand has also faced plenty of criticism in terms of its inability to move with the times, with critics citing Ted Baker’s products as looking ‘outdated’ and ‘drab’ in comparison to more popular and current brands. Failure to modernise designs in line with contemporary trends, has undoubtedly contributed to the undoing of the brand, leading to significant losses.
“It has certainly been a challenging period for premium fashion brands in the UK, and the situation is not looking likely to improve anytime soon, as brands struggle to compete with a reduction in consumer spending. Unfortunately, I doubt it will be too long before we see more retailers in the space experience the same fate as Ted Baker.”
