In Response To Internet Topshop, The Parent Company Will Close 1/3 Stores In The UK.

According to the British commercial media "Property Week", the British high street fashion brand

Parent company, UK

Arcadia, a retail group, plans to close about 1/3 of the 500 entities in the UK to deal with the impact of Internet shopping.

According to sources, sir Philip Green, the boss of Arcadia, wants to "substantially" reduce the scale of Arcadia entities.

It is reported that Arcadia group has not yet determined how many stores will be closed, and the closing time has not been determined.

Arcadia sits on many fashionable retail brands such as Topshop, Topman, Dorothy Perkins, Evans, Selfridge, Burton and Wallis, so it is necessary to wait until hundreds of leases expire before they can continue to push forward the store closing plan.

Otherwise, the contract will be terminated because of premature termination.

In May this year, Marks & Spencer, a British fashion retailer, also announced plans to close its physical stores, saying it would close 14 stores in the year and plan to close 100 stores by 2022.

(see "ornate ambition": the latest performance summary of Marks&Spencer, Urban Outfitters, Gap and Arcadia of four fashion retailers in Europe and America)

In addition, in the face of the impact of the electricity supplier, many other chain retailers choose to sign Company Voluntary Agreement (hereinafter referred to as "CVA") to reduce the financial burden of operating large stores.

For companies trapped in financial difficulties, the move can return to a non profitable entity store or renegotiate with the landlord.

For example, New Look Look, a British high street brand, has proposed in its bankruptcy protection agreement to reduce the rental costs of its 393 stores and to adjust the lease period.

(see "ornate ambition": British high street brand New Look Look plans to lay off 980 people, close more than 60 stores that are not performing well), and other retailers signing CVA agreement this year include: House of Fraser, Mothercare and The Original Factory Shop.

According to the financial year data released by Arcadia in May this year, the impact of online retail on physical retailing plus Britain

The competition was too intense. In the 12 months ending August 2017, Arcadia's profit in the fiscal year fell 42% compared to the same period last year.

(author: Jin Daiqian)