Claire’s collapse…
Hot on the heels of River Island, Claire’s follows. The next high street chain to face going into administration. Wow…another slap in the face for British retail. Spurred by Claire’s US bankruptcy filing, is it any wonder that they’ve got problems here too? The business has even told managers to be on alert, “in case bailiffs turn up”, not exactly reassuring. Hell no…so where did it all go wrong? Not being a Claire shopper myself, it is hard to say, but I’ve noticed it is very expensive. I’m surprised teen’s pocket money goes anywhere in there. In fact, I popped into my local Claire’s (just in case it shuts next week). And I overheard a grandmother berating her granddaughter at the till saying, “but that’s over £30 on some Lilo ’n’ Stitch stuff, you’ll have no money left.” Exactly. Because of course they’ve got stiff competition from online retailers, who I don’t really need to name here as you can work that out.
Claire’s need to ‘nail it’ to survive…
As an outsider, it is just too pink. I know the branding is purple, but there’s way too much pink stuff in there. Oh, yes. And there’s an awful lot of stores in the UK, is that really necessary? Maybe it was once, but not anymore, and if I was a teenager would I go in there? Probably not. If I was 9 or 10 maybe, but could I afford it? No, not judging on its current pricing. In fact a charity shop I visit usually has a large basket full of new Claire’s items which obviously haven’t sold. Priced at just £1, I did indulge. Now it remains to be seen whether it will survive depending on how the administration goes, and if they find a suitable buyer. But with the last pre-tax loss of £4 million, there are a lot of issues and challenges to address. It could mean investing in a potentially dying brand, and would it be worth the risks involved? It is no surprise despite the US arm collapsing Claire’s now finds itself wondering how to take the next step. ‘Rebrand, refresh, and rise’, meet the online retailers head on, or is that just a dream? With social media driven fad’s for the latest looks, does it have the capability to respond? No, not at the moment. But let’s try and think positive, it has been a very successful, well-known and popular retailer with a long history on the high street, so will it rise or fall? The next few months will be critical in deciding its outcome.