by Graham Galpin and Tom Hindmarch
The last few weeks have been some of the worst for retail in my memory, however it was both a disaster and an accident waiting to happen. Arcadia entered Administration on 1 December, and it was not really a surprise to those in the retail industry. What had perhaps passed some of us by was the downstream consequence of this. The house of cards is collapsing.
The cause of the collapse
The collapse of retail chains is nothing new, the arcadia group joins a long list of stores that have suffered a similar fate as traditional retailers struggle with changing market trends and consumer habits. In a recent webinar, Danny Crump (Director of Urbanism at BroadwayMalyan) identified that as recently as 1971, 70% of retail was supplied from 29,000 retailers, in contrast by 2000 this had reduced to 70% from 100. It appears to indicate a top-heavy market with limited choice and towns relying on the same big brands in their centre to compete with other urban clusters. I admit that when I was a senior local authority councillor I encouraged the pursuit of the “big names”, which in hindsight I regret.
Continue reading “The collapse of the House of Cards”