High street suffers its worst February
ECONOMY: High Street retailers have suffered their worst February in a decade, it has been revealed, as womenswear retailer LK Bennett collapsed into administration, with the loss of 55 jobs and five stores – including one in Yorkshire.
HIGH STREET retailers have suffered their worst February in a decade, it has been revealed, as womenswear retailer LK Bennett collapsed into administration, with the loss of 55 jobs and five stores – including one in Yorkshire.
Despite the unseasonably warm weather and Valentine’s Day, in-store sales were down 3.7 per cent on February last year, the worst figures for the month since 2009, according to BDO’s High Street Sales Tracker.
Experts said consumers were resisting unnecessary spending and exercising “extreme caution” with Brexit uncertainty looming large in shoppers’ minds.
It came as LK Bennett, known for its smart daywear and favoured by the Duchess of Cambridge, who made its nude court shoes a key part of her look, became the latest in a string of mid-market women’s fashion labels to buckle under the pressure of dwindling high street sales.
The LK Bennett store in Sheffield’s Meadowhall, is one of five to have closed already.
Trading at 34 other stores, including two in York and one in Harrogate, will continue while administrators seek a buyer, but sales from the company’s website have been temporarily suspended.
The firm – which employs 500 employees in the UK, across 39 stores, 37 concessions and at its head office – is owned by founder Linda Bennett, who had stepped back from the brand in 2008, but returned in 2017 as a consultant.
Patent nude LK Bennett platform courts became a “must have” in any fashionista’s wardrobe when the duchess started wearing them.
This year, Kate has been photographed wearing black suede LK Bennett Marissa boots, and less than three months ago she wore a green and white polka dot LK Bennett dress at Evelina London Children’s Hospital. Prime Minister Theresa May also wore the brand in a shoot for US Vogue.
Joint administrator Dan Hurd said “LK Bennett is a strong luxury UK brand, the new season collection was critically acclaimed, and recent trading is up, which we hope will be attractive to prospective buyers.”
Speaking about February’s trading figures, Sophie Michael, head of retail and wholesale at BDO LLP, said consumer confidence was “teetering on the precipice”.
Lifestyle, a category that would normally see a lift thanks to Valentine’s Day, had suffered the worst monthly result since 2008. Ms Michael said: “It has been a tough start to the year for the sector and retailers are continuing to fill headlines with poor performances.
“Brexit uncertainty is proving to have a disproportionate impact on discretionary spending and there’s an increasing sense of nervousness among retailers.”
To add to the gloom, Hull’s once premier shopping street, Whitefriargate suffered another body blow, with staff at Boots revealing it was due to relocate to a new flagship store at St Stephen’s.
Staff said it would be moving on May 14 – days after the anchor M&S store will close.
Two betting shops on the street have closed in recent days. Womenswear store New Look is also due to shut its doors later this spring.
Rich Sharp Wilson, who opened his cafe and creative space, Bean & Nothingness, on Whitefriargate last August, said things had to bottom out. He said: “There’s an argument that the majority of retail has to go before a genuine regeneration will start to happen. I have my wobbles – but I have got to hold my nerve.”
Retailers are continuing to fill headlines with poor performances. Sophie Michael, head of retail and wholesale at BDO LLP