Barratts failed to ‘move with the times’

THE demise of high street shoe retailer Barratts was on the cards as the chain had failed to keep up with the challenging demands of the consumer, according to a retail expert, who claims the brand was “stuck in the Eighties.”

Phil Dorrell of the retail consultants Retail Remedy was speaking following yesterday’s announcement that the Yorkshire-based business had called in administrators, putting more than 1,000 jobs at risk.

“Another sad day for the high street, and everyone affected, but the possibility of this happening to Barratts was on the cards for some time,” said Mr Dorrell.

“These days, being 110 years old and a recognised high street brand is no guarantee that you will remain on the high street. The consumer is too fickle and the landscape changing too fast.

“Barratts has made the biggest mistake any retailer can make: it has failed to keep up with the changing demands of the consumer.”

Mr Dorrell said that despite shoe fashion being “as strong as it has ever been” Barratts hasn’t moved with the times.

“In many respects, as a brand, it has been stuck in the eighties. Its range and general in-store feel have not been what today’s customers demand and expect,” he said.

“And in an economy that is still tough, any problems or oversights are quickly amplified.”

Andrew Walker, partner and insolvency specialist at national law firm, Irwin Mitchell, added that although there has been plenty of positive macro economic news, this latest administration follows that of Blockbuster and demonstrates the “continuing difficulties on the high street.”

He said: “Even where rescue attempts are attempted and savings have been made, there are certain businesses whose model which may simply not be fit for purpose even in a slimmed down version. Many large retailers are still suffering at the hands of stiff competition from smaller and more nimble online businesses and I expect we will see more companies in distress as this threat continues.”

The business is run by Yorkshire businessman Michael Ziff, also a non-executive director of Town Centre Securities (TCS), the Leeds-based property investor and car park operator.

TCS yesterday took the opportunity to reassure investors following the news of Barratts’ administration.

“The company notes that Barratts, with whom it shares a common director, Michael Ziff, has entered administration.

“The company commented this morning that Barratts no longer trades from any retail premises owned by the company. Barratts is a tenant of the company, at its head office located at Apperley Bridge, Bradford.

“The rental income from the property is £235,000 per annum which is approximately 1% of TCS’s gross income. TCS has previously announced that it has obtained council support for redevelopment of the Apperley Bridge property for residential development.”

TCS last traded at 231 pence at closing on the London Stock Exchange last night, up by more than 5%.

Yesterday’s news comes almost two years after the footwear chain last went into administration in December 2011 after being hit by the downturn in consumer spending and mild weather.

TheBusinessDesk.com’s latest supplement focuses on retail in Yorkshire. It looks at ways high street retailers can adapt to maintain their bricks and mortar presence and at how the use of online sales channels need not be a threat to physical stores but in fact help to boost in store revenues. Click here to read it.