Ted Baker’s imminent closure of its remaining UK stores is a stark reflection of the brand’s declining relevance, according to leading data and analytics company GlobalData.
“The closure of Ted Baker’s stores has been a long time coming, with its product offering having significantly lost relevance among consumers,” said Pippa Stephens, senior apparel analyst at GlobalData.
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“As well as its ranges mainly focusing on formalwear and occasionwear, despite the boom in demand for casual apparel, its distinct product handwriting also fell out of favour, as its heavily patterned designs prevented it from tapping into consumers’ growing preference for minimalistic styles and capsule wardrobes.”
Despite its premium positioning, Ted Baker struggled to command higher prices due to perceived quality issues, leading to heavy discounting that further eroded its brand image.
“The loss of Ted Baker from British high streets will create opportunities for other premium players, as its former shoppers continue to seek high-quality apparel elsewhere,” said Stephens.
“Those most likely to benefit include the likes of Reiss, Whistles and Phase Eight, with their more formal collections and similar customer bases standing them in good stead.”
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By GlobalDataThe closure of Ted Baker’s 31 remaining UK stores will result in more than 500 job losses, adding to the 245 redundancies already announced following the company’s UK arm’s administration in March this year.
“Though the retailer’s international and licensing divisions are expected to remain in operation, they will now be marred by Ted Baker’s damaged brand image, especially its childrenswear and lingerie lines run by Next in the UK,” said Stephens.
“Should Next choose to continue this licensing agreement, it must ensure it modernises and elevates the designs of these products to help reverse shopper perceptions. It is also crucial that it justifies its higher prices through superior quality and fit, as consumers continue to be more selective over their purchases amid economic struggles.”
The UK’s fashion industry as a whole has faced challenges this year, with an unseasonably cold early- and mid-year period impacting sales.
The cost-of-living crisis has also dampened consumer spending on non-essential items, exacerbating the difficulties faced by retailers such as Ted Baker.
As Ted Baker disappears from the UK high street, the industry will be watching closely to see how the brand fares in its international markets and whether it can successfully rebuild its image and regain consumer trust.
