Retail Gazette speaks with industry experts to find out their predictions of which retailers will be the winners and losers of 2025.

Nick Bubb

Retailing analyst 

Winner: M&S

M&S has been one of the winners of 2024, but it is well placed to build on its recent success in 2025, thanks to its significant investment in creating impressive food halls and the development of a ‘weekly shop’ food range, as well as its stronger multi-channel positioning in clothing.

Loser: B&M

B&M has been one of the losers of 2024, but it looks like it will continue to underperform in 2025, given its inability to match the powerful loyalty card discounts of its supermarket rivals in food and its failure to develop a credible presence in non-food online.

Patrick O’Brien

Research director, Globaldata Retail

Winner: John Lewis

It might seem like it’s in reverse ferret mode since Sharon White left, but John Lewis goes into 2025 on the front foot. The return of its Never Knowingly Undersold promise and the de-emphasis of its cannibalistic Anyday range is re-establishing the department store as a place for quality products at the right price.

Loser: H&M

While value clothing players scramble to fend off the threat of Shein, H&M is reacting with almost Gap-like slouchiness. Primark is more fashionable, Uniqlo does basics better, Shein is cheaper. H&M needs to find a compelling reason for people to shop there.

Susannah Streeter

Head of money and markets, Hargreaves Lansdown

Winner: Marks and Spencer

Marks and Spencer has been making remarkable progress with its ranges, which have tickled the fancy of shoppers, leading to some impressive revenue growth. Its core customers have been more insulated from cost-of-living headwinds, but they’ll still have an eye on trimming costs. Clothing and home has made some impressive strides and sales growth reflects improved customer perceptions of value, quality, and style. What is particularly impressive is that over 80% of M&S’s clothing has sold at full price – which is much higher than most of its rivals. Profitability dipped slightly in the first half – due to investment in digital platforms but this is positioning the company more resilient for future growth.

Loser: Boohoo 

Key customer metrics and profits have been trending in the wrong direction at Boohoo and although there is a plan in place aimed at turning things around, big challenges lie ahead in 2025. The situation has prompted major shareholder Mike’s Ashley’s Frasers Group to try and gain two board seats at the company. Boohoo’s board has already rebuffed attempts to install Mike Ashley as CEO. They are instead counting on Dan Finley, with his successful track record at Boohoo’s Debenhams online business, to turn the company’s fortunes around.

Kate Calvert

Head of retail and consumer research, Investec

Winner: Watches of Switzerland

After a more difficult 2024, Watches is well positioned to take advantage of a market recovery in 2025. Brands are back launching more appealing mid-priced range and watches has a number of exciting new projects opening, including the long awaited Rolex flagship on Bond Street. In addition, we expect strong growth to come through in pre-owned and luxury jewellery.

Loser: Boohoo

Boohoo’s underperformance has caught the attention of Frasers Group. We expect 2025 to be another challenging year for the group and are concerned about the general health of a number of Boohoo’s brands given the inroads Shein and others are making into its territory. Turnaround stories are rarely straightforward, take time and are not without risk.

Catherine Shuttleworth

Savvy Marketing CEO

Winner: Primark

Under the smart leadership of Paul Marchant the Primark business continues to grow internationally through a strong strategy and comprehensive roll out programme. In the UK their growth continues with customer appetite for their offer resilient. In high streets across the UK where other retailers have long deserted shoppers Primark continues to surprise and delight.

Loser: Boohoo

Internal wrangling and debt repayments aside, the group is struggling to connect its brands with shoppers. As the original shoppers grow up they aren’t being replaced by the next generation of shoppers and they seem to have lost their ability to connect with them.

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The chain’s value offer and rapidly expanding store network in recent years saw it overtake Morrisons to become the UK’s fourth largest supermarket in 2022.

According to GlobalData, the German discounter could also knock Asda off its spot as the nation’s third biggest supermarket in as early as 2028, as Asda’s hold on the market has steadily fallen over the last year.

Retail Gazette examines how likely this is to happen by comparing the strengths and weaknesses of the rival grocers.

Where do Asda and Aldi currently stand?

Aldi’s record £536.7m pre-tax profit in the year to December 2023 is a big leap from the £152.6m it reported the previous year.

The discounter attributed its steep growth to its 16% surge in sales to £17.9bn and improved efficiencies across its stores and central operations.

Its results are a stark contrast to Asda, which reported a return to profit earlier this year of £180m in the year to end of December 2023, up from a £432m loss in 2022.

That said, sales for the UK’s third largest grocer were still £4bn higher than Aldi’s at £21.9bn for the year, rising 7.1% year on year.

Around 18% of Asda’s sales came from its ecommerce operations, which include online delivery, collection, and delivery via Just Eat, Deliveroo and Uber Eats.

This is in stark contrast to Aldi which revealed last month that it was closing down its click-and-collect service after four years.

However, this is not hampering the discounter. According to Kantar’s, Asda’s hold on the market has plunged dropping 1.2 percentage points to 12.6% over the past year while Aldi’s has edged down 0.2 percentage point to 9.9%.

Stores

Aldi is racing ahead with its store expansion plans, revealing this week it was ploughing £800m into accelerating its quest to reach 1,500 stores nationwide.

The discounter has more than 1,020 stores across the UK, and plans to open an average of one new store a week between now and Christmas, with the discounter having recently been in talks with the government over planning reform to speed up openings. 

Asda has 1,200 stores, most recently opening its Hale Barns store near Altrincham, and has unveiled plans for a mixed-use redevelopment of its of its ten-acre Park Royal store in May.

However, in April it was reported that it was among the supermarkets resorting to selling shops to bring down its significant debts. 

While Aldi is focused on growing its network, it emerged last month that Asda is cutting back on opening new convenience stores to focus its funds on addressing issues in its existing store network instead.

The supermarket, which opened its first Asda Express shop in 2022, previously revealed it was targeting 300 convenience stores by the end of 2026. However, as of last month, it has only opened nine.

Asda said its original target to open 30 Express stores this year had been scaled back to just 12, but that it was still planning to open 300 stores “in the medium term”.

The grocer also completed the conversion of 478 c-stores bought from the Co-op and EG UK to Asda Express during its second quarter this year.

While Asda is pushing into convenience, Aldi is remaining steadfast with its standard store format.

It has only deviated from its core store format a couple of times over the last five years, opening its first “local” store in 2019 in Balham designed to meet the increasing demand of shoppers in London. 

The format, which was expanded to 10 stores, stocks approximately 1,500 items compared to the 1,800 usually sold in standard Aldi stores.

However, a spokeswoman for the discounter noted at the time that this was “not a move into convenience retailing”. 

Aldi also runs a Shop & Go checkout free store in Greenwich, marking another format experiment.

The store offers customers a checkout-free shopping experience, where they can use the Shop & Go app or contactless payment to shop without scanning any products in-store.

However, in January the supermarket introduced a contactless payment option to the stores, raising a question mark over the popularity of the format.

In a similar vein, Amazon ditched its first UK ‘Just Walk Out’ store in 2023, which opened just over two years before, suggesting the format may not be popular among shoppers.

Which grocer offers better value?

Aldi was the cheapest supermarket for August 2024, according to Which?, coming in at £110.58 on average for its shopping list of 62 popular groceries, continuing its long-running streak as the UK’s most affordable grocer.

It has taken the title every month so far this year.

Which? said Asda was the third cheapest, behind Lidl, charging £121.85 for the same products, having come in third place every month so far this year apart from June.

Aldi has invested almost £100m in over 300 price cuts over the past three months. In April, it also vowed to beat the £380m it invested in price cuts last year, having already ploughed over £125m into reducing prices on around 500 products since the start of 2024.

As well as offering low prices, Aldi also recently launched a back-to-school fund to support families with the expensive period of buying children clothing and stationery for the new school year in another testament to its value offering.

Meanwhile, Asda invested £70m in slashing the price of essentials in May. In January, it became the first supermarket to price match both Aldi and Lidl, and slashed prices on more than 200 branded and own-label products in October.

Asda presented a renewed trading plan last month for the rest of its second half, revealing it would have a key focus on driving further use of its Asda Rewards loyalty app, which is already used in 52% of its transactions.

Some of the benefits offered by the scheme include shoppers earning 10% back after purchasing certain products, earning Asda Pounds for completing shopping tasks, and being able to convert the Cashpot balance into vouchers.

The loyalty scheme now has more than six million regular users, with participation rising on a quarterly basis. In April, the retailer claimed its focus on loyalty and prices had delivered growth for the supermarket throughout last year, highlighting the scheme as a “key revenue driver”.

Aldi is the only major UK supermarket without a loyalty scheme, with its managing director of buying Julie Ashfield telling The Mirror it instead wanted to “focus on supplying consistent great value to all customers” rather than rewarding some customers in 2022.

However, Aldi’s pricing is seen as a benchmark across the industry, with various supermarkets touting Aldi Price Match campaigns.

Tesco was the first supermarket to launch an Aldi Price Match campaign in early 2020, with Sainsbury’s following suit in 2021 and Morrisons launching the scheme in February.

Where are they investing?

Following Asda’s disappointing second quarter results in August, it set out three key areas to focus on to improve performance as it aims to deliver an “enhanced and more consistent in-store experience” for shoppers for the rest of the year.

In terms of customer satisfaction, Asda is investing an extra £30m into staff hours to strengthen its customer proposition, in hopes to improve replenishment of stock during opening hours, increase its number of workers on checkouts over weekends, and provide a more effective cleaning programme in stores.

The grocery giant is also ploughing cash into improving product availability across all categories, including its 1,000 core grocery lines most important to customers.

Thirdly, Asda vowed to deliver a renewed trading plan, focused on driving increased use of Asda Rewards.

Similarly, in May Asda unveiled a £50m store upgrade programme for its larger sites, expected to complete by the end of November.

The grocer said the move would see 50 of its larger stores “receive major upgrades”, including the introduction of new in-store services and features. Meanwhile, its remaining stores received “refreshed exterior and interior decoration” to reflect its new brand identity launch. 

However, the moves come as the supermarket continues to grapple with debts, following its acquisition by the Issa brothers and TDR Capital in 2021, which has stunted its ability to make large investments.

Aldi on the other hand unveiled it was investing an “unprecedented” £800m into its UK expansion.

The grocer is set to spend £1.4bn over the next two years in efforts to lower prices and open stores, while creating thousands of jobs and more opportunities for British suppliers.

It also said in June that it was investing £90m into its store upgrade programme, with UK managing director of national real estate Jonathan Neale explaining at the time: “We’re committed to making sure that the shopping experience is on a par with the high-quality products and service we offer.”

Over 30 of the discounter’s stores underwent refurbishments over the summer, while is said more than 100 were set to receive upgrades later in the year.

Asda vs Aldi: Who will win?

As more and more thrift shoppers seek out the discounters, does Aldi really have what it takes to surpass Asda as the UK’s third largest supermarket?

Aldi certainly seems to have the upper hand in terms of value, and stands firm in its strategies of avoiding loyalty schemes and ecommerce. The discounter is also beating Asda in terms of profits, with its record £536.7m for the year to December 2023, which seemingly is fueling more investment into its expansion.

The discounter’s UK and Ireland boss Giles Hurley said this week: “For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain. ”

However, Asda still pulls in higher sales than its rival, and is determined to turn things around under its investment strategy.

GlobalData senior analyst Eleanor Simpson-Gould warns Asda will need to “redefine itself with a clear differentiation from discounters” if it wants to maintain its position as the third biggest grocer.

She argues: “To offset the threat to its third-place ranking, Asda will need to add intangible value to an intensified focus on price.” 

“Unless Asda can drive stronger sales through improved store experiences, an intensified focus on price and improving locality to consumers, it is increasingly likely to be overtaken by Aldi in the next five years,” she adds.

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At its peak, it was the clear greetings card market leader with over 1,000 stores and a presence in almost every major British town, but an influx of internet rivals alongside the growing popularity of Card Factory’s value offer resulted in the retailer losing its grip on the industry.

Clintons may be battered and bruised but the cards retailer refuses to fold, despite two administrations in the 2010s and mass store closures. However, new owner Cardzone admits it faces a challenge to get it back on track.

“We weren’t optimistic as to what we would find or the condition the business would be in, but we underestimated the task to turn it around,” admits Cardzone trading director James Taylor.

However, he and Cardzone know how to navigate the UK greetings market. He works under his dad Paul Taylor, who opened the first Cardzone in 2005. It’s a true family affair as his sister Alex looks after the marketing.

The family business has around 175 stores across the UK, the bulk of which trade as Cardzone shops, however, it also operates Hallmark, Yankee Candle, Mooch, Paper Kisses and Card Centre.

James Taylor explains the business’ growth – which reported a 28% surge in pre-tax profit to £6.48m last year against sales of £51.9m –  has come mostly through acquisitions, with Cardzone acquiring the outlet business to most of its sister brands gradually over the years including Yankee Candle’s outlet business in 2020.

He says that buying Clintons seemed the next logical step.

“It was the biggest opportunity that was ever available to us over the years to really grow at a significant level and take on some really good stores,” explains Taylor, sharing that the business came close to securing a deal for the high street chain back in 2019 before the pandemic hit.

However, the family’s ties with Clintons runs a lot deeper.

Dad Paul sold his first greetings card retailer, an eight store chain The Greeting Card Group, to a venture capital-backed business before it was sold on to Clintons in the late ’90s.

“It’s quite fitting that coming up to our 20th anniversary, we’ve managed to do this acquisition of a very different Clintons, I might say, to what it was,” says Taylor.

The deal has seen the group’s store estate and turnover “effectively double”, which Taylor admits comes with a new challenges for the business.

“We’re going to need to strengthen our management team a bit, which is something that we’ve been working on, but it’s going to pose a different challenge for us, because we have been able to really micromanage effectively the business [until now].”

For now, Taylor says the two brands will sit alongside each other with the pair competing in very few locations.

Along with the differing locations, Taylor says the big difference between the two chains is the size of store, with the typical Clintons shop almost double the size of Cardzone at around 2,300 sq ft.

He adds that the product mix is also distinct, with Cardzone selling more gifting than Clintons.

‘A lot to sort out’

Taylor is cautious over celebrating its new acquisition yet.

“Until we’ve got it performing, we almost don’t want to celebrate because there’s a lot of work cut out and a lot to sort,” he says. “It’s in a worse position than what we’d anticipated.”

“One thing I can say is that we’re very confident that we can turn this around, but it needs to be run quite differently to how Clintons was running the business.”

The retailer’s troubles on the high street has been widely reported. It’s aggressive growth strategy in the 1990s saw the retailer grow from around 270 stores nationwide to over 670 in the space of four years.

Then in 2004 it snapped up rival chain Birthdays – which operated 500 stores, discount business Cards Direct, and a string of Partyland franchise outlets – for £46.4m in a deal which expanded the Clintons portfolio to around 1,250.

The retailer found itself grappling with an over-inflated rent bill and increasing competition from Card Factory and the supermarkets, which forced it to call in its first set of administrators in May 2012. It was sold a few weeks later to a subsidiary of US card maker American Greetings in a rescue deal that saved 434 out of its 784 stores. Its Birthdays business was not included in the sale.

The high street chain faced collapse once more in 2019 – blaming business rates and weak consumer demand – after it failed to gain support from its landlords for a CVA. It was bought back by American Greetings in a pre-pack deal that safeguarded 2,500 jobs and 332 stores.

However, there was no return to form as Clintons hired restructuring advisers last year after racking up £5.4m in pre-tax losses as sales plunged 25% to £96.5m in the year to 27 May 2023.

Its store estate has shrunk from 232 to 160 stores nationwide as of June this year, as its previous owners sought to focus on profitable stores.

“It’s fair to say the business has struggled,” says Taylor. “Going from 1,000 stores and the processes, policies and procedures in a business of that scale, compared to one like this now – they’re very different things. I think it’s struggled as it’s downsized over the years.”

Despite that, he believes there’s still great value in the brand. “Clintons is a household name, isn’t it? People know Clintons and it’s been around for a very long time.”

Familiar with operating a greetings card business on a smaller scale, the Taylors are keen to apply their expertise to Clintons.

“Cardzone being an owner-led business, we’re very mindful and controlling of cost base,” says Taylor. “There are a lot of different products and services that Clintons over the years signed up for [such as] different facilities and financial systems.

“We’re quite simple, we keep things very basic, and that model has worked and it means that you can trade robustly on a high street that is difficult – it has its highs and lows.

“We’re an incredibly seasonal business like many retailers are, but being a greeting card specialist, without Christmas, we wouldn’t have a business it’s as simple as that.

“You have to be able to run a business all year round and you have to control your costs extremely well in the quiet times,” he says.

Taylor is anticipating a “challenging” golden quarter for Clintons as Cardzone honours the 2024 Christmas orders the high street chain placed before the acquisition.

With a difficult key trading period ahead, Taylor does not expect the high street chain to turn a profit until “post Christmas 2025 when hopefully we’ll have really traded well across that full year”.

What next?

Taylor admits that the family hasn’t fully decided on the finer details of its plan for Clintons, sharing that most of his time has been spent on trying to get the high street chain back on track.

“We don’t actually know exactly what direction we’re going to take some of these things in,” he admits.

“It’s hard to say because we’ve got so much to sort out within the business and that change is going on right now. At the moment, you’ve got two sets of everything and that model won’t work long term so we are making some changes in that way.”

He says that is “going to mean some pain this year” with its brand strategy and growth plan coming into force from 2025 onwards.

That pain may include some more Clintons store closures in the coming months, on top of the existing foreclosures of branches that were not included in the sale, “whilst we get the ship turned around”.

“The problem is that some of the Clinton stores are way too big for modern times on the high street so it’s downsizing and finding something more suitable.”

However, Taylor is cautious of how discussions with landlords will go “because of how the business was run previously”.

Rightsizing the store portfolio is only half of the problem.

“The Clintons stores aren’t the most easily shoppable and they can be quite claustrophobic,” says Taylor.

“We want to try and open things up a bit, showcase the high proportion of cards as we know that most customers come in for that. Then from a gift in perspective, we use quite low circular tables in Cardzone and that works effectively.”

“We see the most opportunity to grow sales on the gifting,” says Taylor, explaining that the business has introduced more giftable products to widen its appeal to shoppers.

Clintons has been seen as a more premium card shop on the high street when compared with Card Factory and Cardzone itself, but Taylor admits it will introduce more offers in store to align with Cardzone, which is “quite promotional driven because customers like a bargain”.

Clintons 3.0

Once Clintons is profitable again, Taylor says the team can begin to look at “the exciting stuff” such as launching “the future look of Clintons”.

“We want to have a concept that definitely holds on to the traditional key factors of Clintons but also introduces some newness and giftware and different ways of displaying products.”

He predicts this will likely start rolling out “either later this year or 2025”.

This will be the second brand refresh for Clintons, as its previous owner ditched the chain’s well-known orange branding in favour of its current red logo back in 2012 after it bought the brand out of administration – although Taylor hinted that it will stick with red.

He is also considering rebranding some of the existing Cardzone stores as Clintons once the rebrand is complete “because we know that the Clintons name does hold a lot of value”.

Part of the “big brand refresh” will also include opening more shops “because that’s what the high street needs”, he says.

Both him and his sister Alex are passionate about the role of card shops on the high street.

“People will go to supermarkets [for their cards] because they’re convenient, but if you’re on a high street, people will make that journey to go visit their favourite brands and see what’s new,” she says.

“The UK population loves buying and sending cards and people are living longer,” he adds. “There’s a larger elderly population out there, and they are predominantly our typical customer -, middle aged, female.”

Taylor suggests that previous owners have made “mistakes trying to revolutionise the brand” in launching new products and add-ons to reach a new consumer, all while forgetting about its core customers – the middle-aged female.

Keeping in line with its self-proclaimed simpler operations, his sister Alex says it is unlikely that Clintons will relaunch its online shop anytime soon.

“We’ve got enough on our plate looking at the physical stores but it could be something that we’re looking to in the future. We just need to get all of the physical stores into a really good place [first],” she says.

“The growth in online in my opinion, and from looking at Moonpig and Funky Pigeon, is all around personalisation. That would be a completely new remit for us because we’re very much traditional cards.”

It’s a model that has served well for the rest of the Cardzone business, which has focused on building a reputation within the local community instead of on national scale. Perhaps a dose of family values could be just what Clintons needs to get back on its feet.

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The first major move since he joined in January indicates that Ruis – who previously spent 10 years at the department store – is refocusing on what makes John Lewis special.

“As of Monday, we are bringing back Never Knowingly Undersold,” says Ruis. “This is our brand and has always been our brand. It’s about the quality we offer, it’s about the service we offer, and it’s about the prices we offer.”

He describes its return as “the best of old and best of new”, adding “it’s back and it’s going to be a lot better and different to before”.

The “reimagined” pledge will see the department store use AI to match its prices to those at 25 major retailers – including, for the first time, online brands.

The return of what some say is the best of John Lewis is being supported by the retailer’s “biggest ever marketing campaign” and the start of more than 650 store improvements being rolled out across its entire store network.

A new and improved Never Knowingly Undersold

Ruis admits that Never Knowingly Undersold was “not fit for purpose” when it was ditched in 2022, as staff were left relying on pencils, spreadsheets, and trips to other shops to keep track of prices at competitors.

He says there was “confusion” about how the price pledge worked, adding that it was based too much on a “pre-web, pre-omnichannel world”.

However, he admits the move to focus on everyday quality and value instead – spearheaded by his predecessor Pippa Wicks – had backfired.

“When we removed the price promise, people automatically assumed that all prices went up…that wasn’t necessarily the case,” Ruis says.

The executive director is hoping to change customer perceptions with a new improved and simplified price promise.

“We’ve invested a multi-million pound contract with a new technology called Quicklizard,” he says, explaining that the tech is “AI enabled and allows us to scrape all prices, every minute, every second of every day, and it gives our teams a chance to see in real-time with complete visibility, complete accuracy”.

The software allows the retailer to be “more dynamic” on pricing, with store staff able to update price tickets daily.

“It’s sharpened-up price in a more everyday fashion rather than customers waiting for the big offer,” he says. “You’ll see how dynamic and how competitive they are from today,” he says, noting that the team have made 30,000 price changes so far ahead of its official launch on Monday.

The retailer will be price matching “25 major competitors over £50bn worth of competitive trade with a seven day price mechanism,” Ruis says.

The brands being matched are: AO.com, Amazon (on technology), Apple, Argos, Asos, Boots, Currys, Dunelm, Dreams, The Entertainer, Fenwick, Flannels, Furniture Village, Harrods, Harvey Nichols, Heal’s, House of Fraser, Lakeland, M&S, Mama’s & Papa’s, Next, Richer Sounds, Selfridges, Smyths Toys, and Space NK.

In short, the businesses that are likely to have been stealing share from John Lewis in recent years.

“They are the top competitors,” says Ruis. “Why are they top competitors? Because they’re either the market leader or they’re where our customer shops elsewhere.”

John Lewis is also providing a 7-day price promise, where customers can come into stores or file an online claim form if they find the product cheaper elsewhere to get the difference refunded for a week after purchasing the product in store.

Back with a bang

Restoring John Lewis’ ‘Never Knowingly Undersold’ pledge was one of the first things on Ruis’ to-do list after returning to the Partnership at the start of the year, he shares.

“I joined in January [and] we started discussing it very strongly in February…It’s been an extreme fast track from about February,” he says, adding its relaunch coincides with the pledge turning 100 next year.

“This is not just a price promise,” Ruis makes clear. “This is about the relaunch of Never Knowingly Undersold, which is about our brand and why it’s so special and so different.”

The return of the famous price pledge is being supported by the retailer’s “biggest ever investment in marketing”, he says.

This includes double page spreads in national newspapers, changes in store and three big ads, which “talk about how John Lewis has worked with the public over 100 years, looking forwards and looking backwards,” says Ruis.

He hopes the new campaign will restore trust in the John Lewis brand among customers to deliver on quality, price and service.

While the John Lewis boss is tight-lipped on how much the retailer is investing in the relaunch, the Partnership revealed earlier this year that it would inject £542m into strengthening its John Lewis and Waitrose brands.

Refreshing John Lewis stores

As well as Never Knowingly Undersold, investment is also being made into John Lewis’ stores. Ruis plans to make more than 650 store improvements, which will apply to the whole estate.

“We’re about four weeks away from launching the new beauty section [in Oxford Street],” he says, explaining the new design will include “a combination of changing the brands around in terms of their new concepts and new brands that we’re increasing distribution of”.

The space dedicated to premium fragrance will grow and a new part of the floor will be allocated to what the department store calls “beauty discovery”, which Ruis describes as “that SpaceNK/Sephora-type world”.

The Oxford Street flagship is one of three stores receiving a makeover of its beauty department, with Cheadle in Stockport and High Wycombe in Buckinghamshire set to follow.

John Lewis’ technology department is also getting a revamp and expanding in size, with Ruis sharing “we’ve got a new AI-inspired and PC Laptop rollout coming across the estate”.

Changes will also be brought into its fashion department, which will take inspiration from the concessions model used in its beauty department to boost brand perception.

In another major move that shows that Ruis is looking to improve John Lewis’ other big USP of service, he is vying to bring more partners on the shop floor after the business restructured its store staffing last month.

“I see the opportunity for us to use our staff on the floor in a more effective way,” says Ruis, explaining that John Lewis has “simplified back of house” with the help of a multi-million pound investment into store technology.

The investment includes over 6,000 new digital headsets to help cut wait times and remove the need for staff to have to track each other down in the branch, as well as mobile printers to to allow partners to easily replace missing shelf-edge labels.

Other technology rollouts include a new ship-from-store technology, “which means that everything in our 36 stores will become available for our customers online,” says Ruis.

“It’ll be completely friction free – you won’t know that that your T-shirt has arrived from our Cardiff store or has arrived from our DC in Milton Keynes. It’ll just be virtual and will make online service really good.”

Ruis says the retailer’s online offer will also be bolstered by shipping direct from suppliers. He says this new “direct-to-consumer platform”, will be quicker and will give customers a greater choice from its best brands.

While the John Lewis alumni does not mind looking back and reinstating the important elements that make the department store special, Ruis is also looking to new technologies and ways of selling to make this unique business fit for the modern age.

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But in recent years its chokehold on the industry seems to be slowing.

The American sportswear giant is in the midst of its worst slump in a decade. Earlier this year it unveiled plans to cut 1,600 roles as it looks to make £1.6bn in cost savings over the next three years on the back of softer sales.

When making the announcement to staff about job cuts, Nike chief executive John Donahoe – who replaced its much-lauded boss Mark Parker in 2022 – admitted: ”We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

The gravity of the situation was laid bare last week when Nike slashed its 2025 forecast after reporting weaker-than-expected fourth quarter sales. The news led to its shares plunging 20%, making it the biggest one-day percentage drop in its stock’s history.

The brand has faced increased competition from new players and old, and some have pointed to a lack of innovation as it has struggled to meet shifting consumer preferences.

As the Paris Olympics approaches and the world gets fully immersed into a summer of sports, Nike is determined to hark back to its innovative roots and affirm its position as the undisputed leader in sportswear.

But what has put Nike in this vulnerable position in the first place, and what steps does it need to take to return to peak performance?

Nike’s recent stumble

Compared to its historical dominance in the industry, Nike’s recent performance has shown signs of weakness as new players such as On, Hoka and Lululemon have gained traction.

Retail consultant and former Nike exec Peter Harewood tells Retail Gazette: “Nike has been going downhill for a while”.

Although he says this decline is “accelerating”, Harewood adds: “At least it’s recognised it’s got a problem and has put a plan in place to turn things around.”

But what factors have contributed to its declining performance in recent years?

Moses Rashid, founder and CEO of sneaker marketplace The Edit LDN lists a few reasons.

“The lack of innovation in new silhouettes, over-saturation of releases which has seen multiple releases weekly in a climate where discretionary spend is down. For me, the easier the sneaker is to get your hands on, the less desirable it is, meaning the hype goes.”

“We, as consumers, want to see something new and different. Gone are the days of buying an Air Force 1 in every single colour. We thrive off getting the limited release, the sneaker that not everybody has. In turn, this approach has seen the influence shift to up-and-coming brands, and shift consumer interest.”

Harewood agrees that the biggest contributing factor to Nike’s struggles is its lack of innovation across its product range.

He says that Nike’s reliance on its most popular shoe – the Air Force 1, which debuted over 35 years ago – is a clear example of this.

While its approach of capitalising on the designs that customers knew and loved worked during the pandemic, as the world reopened, consumers wanted newness and Nike’s lack of fresh offerings became apparent.

Harewood adds: “During Covid it let its creation team fall apart, and now what’s happening is brands like On and Hoka have kept building and developing and expanding their product ranges.”

“Now the kids are looking at this stuff that’s new, shiny and different and they are literally eating Nike’s lunch.”

Even some of its stockists agree that lack of innovation is hurting Nike. Back in March, JD Sports boss Régis Schultz admitted that the brand’s sluggish innovation was contributing to flat sales at his business.

“Nike has been so successful but they just stopped a little bit bringing in new stuff,” Schultz told Bloomberg. “At the same time Adidas is doing very well, New Balance is doing very well.”

The CEO went on to say that shoppers quickly “get bored”. “If you don’t bring in new stuff, new product, new innovation, new colour – I think the demand is suffering,” he added.

Major missteps

Aside from the lack of innovation, other strategic missteps have been made.

Back in 2017, Nike launched its Consumer Direct Offense, as it looked to expand its direct-to-consumer (DTC) business, and lower its reliance on wholesale accounts.

That included saying goodbye to many wholesale partners as well as ending its high-profile Amazon.

However, Rashid says this approach has hurt the business. “The decision to overstock with DTC only, has seen the market shift away from Nike. It used to have the right balance, but it changed its stance and has been impacted,” he says.

And it looks like Nike agrees – to some degree.

Earlier this year CEO Donahoe said: “While our consumer direct acceleration strategy has driven growth and direct connections with consumers, it’s been clear that we need to make some important adjustments.”

Last year, Nike revealed it would be reinvesting in wholesale partnerships, with old stockists and new ones, after it became clear that cutting ties with over 50% of its partners was too drastic a step.

Although its DTC sales edged up 1% over the last year, in its last quarter they fell 10%.

GlobalData head of apparel research and analysis Chloe Collins explains that it’s about having “the right blend” of both DTC and wholesale.

“A lot of DTC brands at the moment are realising they they do need the exposure through wholesalers,” she adds.

Nike is clearly trying to make sure its working with the “right” wholesalers, to ensure that its image, the presentation of its products and brand is presented well, because otherwise it can damage their reputation, Collins says.

Meanwhile, Rashid highlights the problem of Nike saturating the market with certain lines. He uses its Dunk Panda shoe “as a prime example”.

“At one point hitting market prices of £250+ in all sizes, it was desirable. However, Nike continued to restock and restock to a point where almost everyone in London appears to have one, which in turn has seen this pair available at retail price at almost every outlet.”

“Why is this important? It took this approach with multiple sneakers which at one point were desirable and creating multiple versions of it. Gone are the days where we used to stand in queue and post when we finally got ‘that’ pair.

“Over time, it’s worn us down and the desirability has gone.”

Rising rivals

The sportswear market has always been crowded, however an influx of newer brands have made it more competitive than ever. Brands across the spectrum have been gaining traction and stealing market share from Nike.

Brands like Adidas, On, New Balance, Hoka, and Lululemon are just a few names tapping into areas that Nike hasn’t prioritised in recent years.

For example, Hoka and On have developed popular performance-based running shoes, while Lululemon has become synonymous with fashionable yet functional athleisure.

Collins says that Nike has “got so much competition now”

“Not even just Lululemon, but you’ve got brands like Tala, Alo Yoga and Adanola, all fashionable athleisure brands that lauched off the back of Lululemon’s success.”

These brands have particularly resonated with women as Collins says their fashion credentials mean they can be worn day to day, unlike Nike, which she says is still seen as purely a brand for exercise rather than style.

She explains: “There’s been a real athleisure boom since the pandemic, which has born all these new brands that just hit the brief a lot more with females. I think females want more of that trend aspect.”

On the performance shoe side of things, Hoka and On have been growing rapidly. Harewood says: “Their shoes are seen as more innovative and appealing to younger consumers.”

Earlier this year, On unveiled blockbuster partnerships with American actress Zendaya and British singer FKA Twigs as it deepens it push into clothing, further solidifying their position as the most desired new players in the market.

And the numbers prove it. Hoka and On Running’s market share have more than tripled during the pandemic, according to the latest sports footwear research from GlobalData.

Hoka’s share jumped from 0.2% in 2019 to 0.7% in 2022, and On ‘s quadrupled from 0.3% to 1.2% – with Nike’s share falling from 23.4% to 22.1% over the same period.

With On and Hoka’s star rising rapidly over the past two years, more share is likely to have been gobbled up.

Harewood says that “Nike fell asleep at the wheel”  by failing to recognise shifting consumer preferences towards quality products.

He explains that in the past, consumers were wooed by the hype and flashy marketing that Nike is known for. However, the current consumer preferences for quality products plays into the hands of rivals like On, which is known for their innovative approach to sportswear and durable products that stand the test of time.

“Nike has always known its had a quality problem, but its always been able to live behind the hype and the glamour and the excitement. I’ve always said Nike is a marketing company that just happens to sell shoes,” says Harewood.

He adds that the business has also been “way too focused on the youth market” of 15 to 18 year olds, neglecting the important 20 to 30 age bracket, which he calls a major mistake because “they will be loyal customers for much longer”.

Meanwhile, some of the more established sportswear brands have become resurgent again.

Rashid says: “Adidas has leaned into the Samba through to Gucci Gazelles. It’s managed to become culturally relevant again.

“New Balance have tapped into cool collaborations with Joe Freshgoods and Aime Leon Dore, leaning on functional and clean styles, backed with great marketing using likes of Arsenal’s Bukayo Saka and Chicago Bulls’ Zach Levene.”

Rashid adds: “The big thing for me is Nike used to really drive culture, and it feels like they need a stronger cultural influence at the helm to support this.”

His comments follow a raft of senior creative leaders exiting Nike in recent years.

Chief design officer John Hoke, known for driving its innovation in design, departed in 2022, while Michael Spillane, president of consumer creation who was instrumental in product innovation and global brand strategy, announced his retirement last year after 16 years with the company.

Keeping up with the times

Rashid believes that Nike hasn’t kept up with consumer preferences when it comes to trainers, which over the past year has been towards more functional silhouettes.

Brands like New Balance, Hoka, and On Running have benefitted significantly, with their products going viral across social media.

In contrast, he says: “Nike hasn’t really tapped into this market with the coolness that we’re used to. There is still a need for consumers to want something different. Nike’s approach of regurgitating their styles has left us with fatigue.”

This, combined with the fact that shoppers are just spending less, has hit the sportswear giant.

Rashid says: “Historically, we used to buy multiple pairs of sneakers monthly. Now consumers are buying fewer items.”

Another way Nike hasn’t kept up with the increasingly hard times is with its prices, which have crept ever higher even amid the cost-of-living crisis.

On the back of its weak results last week, the business said it would launch a new $100 (£79) and under trainer line that will roll out globally to help drive growth.

Collins says that with many consumers struggling financially, “it’s important for Nike to have some more entry-level price points”.

However, she adds that having cheaper shoes may not be enough to convince shoppers to choose Nike over other trainer brands as “it still needs to have the best product as well”.

She stresses it also needs to focus on product differentiation and standing out from competitors like Adidas, Hoka, and other running specialists.

What next for Nike?

Harewood believes that Nike must refocus on innovation if it wants to regain its dominant position at the top of the market.

“They need to prioritise developing new, innovative products again,” he says.

Nike claims to be doing just that. Last week, Donahoe said: “We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike’s future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.”

The sportswear titan has kickstarted “a multi-year innovation cycle”.

Donahoe explained: “We’ve been accelerating our innovation pipeline, including pulling forward several innovations, some more than a year. We’re moving aggressively to re-establish our innovation edge.”

He said it began with performance lines, which he highlighted grew double digits in its last quarter.

Harewood adds that Nike should be broadening its target market beyond just youth and have a stronger focus on women’s products, to capture both these important targets.

Donahoe said that fitness represents one of its largest market share opportunities, particularly for its female consumer, and it plans to make “meaningful investments” in the area.

He highlighted that statement leggings, which he deemed “a key focus for us”, were up high double-digits in Q4, led by innovations it had introduced over the past few quarters.

Harewood is hopeful the brand can turn itself around. “With these strategic shifts, I believe they can rise in dominance if it manages to refocus on the areas that made it into the brand it is today – innovation, quality and appealing to all consumer groups,” he says.

With a clear innovation problem to deal with, Rashid adds that “sneakers is all about the culture and community and it feels like Nike has lost some of its identity”.

“I’m still a huge advocate but something feels like it’s lacking,” he says, emphasising that it “rooting for Nike to pull it back”.

Donahoe is determined to do just that – and is keen to use the summer of sport to show the world what Nike can do.

He said: “The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world. This is led by breakthrough innovation and announced by a brand campaign that you won’t be able to miss.

“We can’t wait to bring all this Olympics product to life across the Games and in more than 8,000 doors worldwide. This summer we will cut through the clutter to create powerful energy for the Nike brand. We’re back doing what we do best: creating impactful storytelling and ultimately,
brand distinction in sport.

“In the end, we’re taking our challenges head-on, and we’re regaining our edge.”

That is quite the call to action. The stage is set for Nike to recapture the hearts and minds of consumers during this summer of sport.

Retail Gazette rounds up the best new store openings of the year that have created a real buzz on the high street.

M&S, Battersea in London

At the start of the month, M&S opened the doors to its first clothing-only store inside London’s Battersea Power Station.

The 8,400sq ft shop stocks the retailer’s womenswear and menswear ranges, including dedicated areas for Jaeger, Autograph and Rosie. It also offers a small beauty range, as well as click and collect services.

M&S said: “Shoppers looking for style advice will be assisted by the 35-strong team of customer experience visual stylists who are on hand to provide help with fittings and outfit building.

“And for those who shop online, new click-and-collect points will be available for any online clothing, home and beauty orders.”

The store forms part of the M&S’ £30m investment in its London stores this financial year. The investment includes two new food halls and refurbishing 12 existing stores across the capital, including Blackheath, Chancery Lane, Islington and Teddington.

H&M, Westfield Stratford

H&M reopened the doors to its Westfield Stratford store in November, showcasing a brand new “innovative” technology-centric concept.

The Scandi fashion giant created an elevated shopping experience in the revamped space, which offers a curated selection of its fashion, beauty, and home collections.

Customers can access new smart store services, including interactive fitting rooms, where screens recognise products and provide tailored styling tips based on each individual garment.

Shoppers can also easily request a different colour and size as well as recommended garments directly to the fitting room or order on the H&M website.

New technology also offers mobile checkouts for a seamless shopping experience anywhere on the shop floor, alongside self-service checkouts.

H&M head of expansion for UK and Ireland Klas Degeryd said: “The newly designed store truly reflects our investment and commitment to providing the best of our brand for our London customers.

“Every aspect of the space is crafted with the customer in mind, celebrating the joy of shopping through exceptional design and interactive features. London is a global hub of fashion and creativity, so we are proud to expand and evolve our presence here.”

Sephora, Birmingham

Last month Sephora unveiled its latest store in Birmingham as the beauty giant ramps up its expansion plans for the UK, targeting 20 stores across the nation.

More than 2,000 people queued in Birmingham’s Bullring & Grand Central for the opening of its latest beauty store, which is the French retailer’s sixth in the UK and features the biggest Sephora window facade in Europe at 26 metres.

Customers can shop from a selection of brands across makeup, travel, fragrance, skincare, haircare, grooming and wellness, including exclusive to Sephora UK brands such as Mario, GXVE by Gwen Stefani, Haus Labs by Lady Gaga and Topicals.

Sephora UK managing director Sarah Boyd said: “We’ve once again harnessed the power of listening to our customers to shape our expansion plans around the UK, and the appetite that our beauty community in Birmingham had was profoundly powerful.”

Sainsbury’s Cobham

In October, Sainsbury’s completed a major upgrade to its Cobham superstore in Surrey, which now acts as a ‘labs’ for its test and learn approach.

While not every new or revamped store will be an exact copy, the site has been providing the supermarket with real insight on over 100 ‘experiments’ that have been trialled into what could be rolled out more widely in the future.

More space in the Cobham store has been given to the grocer’s food ranges, with a “quite different” look to a traditional Sainsbury’s supermarket.

New concepts like the ‘fish counter on a wall’ have been introduced, with all the species of fish you would expect to buy at a counter, stored in the same aisle as other fish products, as well as dedicated ‘Free From’ areas and specialty end of aisle displays, such as a speciality cheese section alongside wine pairings.

With the retail sector having experienced unprecedented levels of crime over the past year, the new store layout also pays attention to where higher ticket items, such as beer, wines and spirits, are housed.

At Cobham, these products are presented in a wide, open space in the centre of the store, which is more open, bright and with more staff able to have they eyes on the area, which in turn is driving an uplift in sales and reduced shrinkage.

This section also includes smart shelves, where if someone takes multiple bottles of spirits off at the same time, the shelf will send an alarm out to alert colleagues – a precaution that has been used for quite some time.

Harvey Norman, Merry Hill

Australian lifestyle, home and tech retailer Harvey Norman opened its first English store in October at the Merry Hill shopping centre in the West Midlands.

The 57,000 sq ft flagship houses a range of luxury furniture, including sofas, dining sets, bedroom suites and mattresses, alongside an assortment of smaller items including kitchenware.

The space also features home appliances, technology, and entertainment items from brands such as Dyson, Shark, Apple, Samsung, LG, Miele and Sage, with dedicated areas for each product category, including a cooking appliance centre that has been specifically designed for Merry Hill.

Harvey Norman UK MD Lachlan Roach said: “With over 300 stores in eight countries across the globe, it will be no surprise that we have been wanting to make our entrance to the English market for a while.

“The opportunity we had to open in a key national destination like Merry Hill was not one to miss, and it makes for the perfect home for our flagship location.”

Represent, Manchester

Streetwear brand Represent opened the doors to its first UK store in its hometown of Manchester in October, following a period of mass growth.

The 5,419 sq ft unit on New Cathedral Street in Manchester City Centre is the first permanent standalone retail space for the brand in the UK after opening a bespoke boutique store in West Hollywood, Los Angeles earlier this year.

An entire floor of the store is dedicated to Represent’s performance wear division, 247 by Represent, which the company said is “now the fastest growing arm of the brand”.

Founded in Manchester in 2011 by brothers George and Michael Heaton, Represent sales have grown at an average of 81.4% over the past 3 years. Until this year, the streetwear brand had been an online business selling via its website, however, it did sell through Selfridges, Harrods, and End Clothing.

George Heaton said: “The Represent Manchester location marks an important and iconic milestone for the brand; having spent the past three years planning physical retail footprints, trialling the senses of energy, look, feel, and scent through our partners such as Selfridges and Harrods along the process.”

Uniqlo, Kings Cross

Uniqlo opened its new Coal Drops Yard flagship in September, featuring interactive elements for all the family to enjoy.

Located inside a grade II listed Victorian coal drops shed, the space was redesigned by British interior design and architecture studio Heatherwick Studio to highlight the space’s industrial Victorian heritage, including exposed brick walls and wooden beams.

The 9,000 sq ft store houses the retailer’s Uniqlo Studio on the second floor, where shoppers can recycle, repair or remake garments so they can keep wearing them for longer.

The Coal Drops Yard location is also the first in the UK to trial the retailer’s mobile repair and customisation stations that can be wheeled around the store and its adjoining outdoor terrace, which also houses a custom-made ping pong tables for the public to use.

The Japanese retailer tapped British artist Pref to create an art mural within the store, which takes inspiration from the retailer’s Made For All philosophy in his classic typography style.

Frasers, Meadowhall

The same month saw Frasers Group open to its latest Frasers flagship as it continues to phase out its House of Fraser brand.

The 100,000 sq ft “next-generation” department store cover two floors, housing men’s and womenswear, kids, beauty, footwear and homeware.

The ground floor space stocks brands including Ganni, Rains, Nobody’s Child, as well as shoes and accessories labels Ugg, Longchamp and Coach.

Frasers Meadowhall features a smaller beauty hall taking into account the Flannels store located nearby and the group’s first food-to-go partner, Pret-a-Manger, which is located by the entrance.

The first floor of the flagship features Sports Direct’s newly launched outdoor concept, as well as it’s running section, which includes a running gait analysis machine to help consumers find the right product for their running journey.

Sports Direct Meadowhall will also offer the new Nike Football department, the second time this concept has been launched within the retailer, the first being at its London flagship.

Waitrose John Barnes, Finchley Road

Waitrose opened the doors its newly refurbished John Barnes supermarket in North London in August as part of a £1bn investment into revamping its store estate.

The premium grocer expanded its fresh produce department, upgraded its meat, fish and cheese service counters to include a dedicated parmesan section and a second dry aged beef cabinet, and installed its first-ever chilled wine department.

The grocer also spotlighted its growing number of third-party partners within the store, with a Gail’s freshly baked display, cabinets stocked with its exclusive Crosstown doughnuts tie-up, and a Caffè Nero coffee stand.

Waitrose John Barnes also features a new upgraded service desk that was moved to the back of the store, and the first-ever delivery hatch to help the supermarket facilitate on-demand grocery outside of its store opening hours.

The supermarket’s executive director James Bailey said: “The transformation of our Finchley Road store marks the next evolution of our journey to create a great shopping experience for our customers, underpinned by a high-quality product offering tailored to the local area, and the quality service we are synonymous with.”

Gymshark, Westfield Stratford

Gymshark unveiled its highly-anticipated second UK store in the summer following the success of its flagship on London’s Regent Street.

The activewear giant moved into a 7,000 sq ft unit in Westfield Stratford City, which will house specific events in the space – from athlete meet and greets to activations.

All the mannequins used in store have been modelled on 3D renderings of real-life Gymshark consumers with varying body types.

Founder and CEO Ben Francis said: “It’s a slightly different shopping experience to Regent Street. This is a smaller, more shopping focused and more product focused space.”

Nike Rise, Leeds

Nike opened its third UK ‘Nike Rise’ concept store earlier this year at the former Victoria’s Secret site in Trinity Leeds shopping centre.

The flagship, measuring 10,000 sq ft, uses innovative digital experiences and services aimed to “enliven the sporting pulse of the city”.

The store also features a digitally powered “Footwear Fastlane” where footwear product information and stories will be shared with shoppers, as well as the brand’s personalisation service “Nike by You”.

Trinity Leeds centre director Steven Foster said: “It’s incredibly exciting to welcome Nike Rise to Trinity Leeds, offering a first-of-its-kind retail concept with a unique digital experience to help people connect with sport in Leeds, and the local sporting community.

“The launch of Nike Rise – the brand’s only concept store in the region – comes during a particularly exciting time for Trinity Leeds, as we gear up to welcome more big-name brands in the coming months.”

Sports Direct, Cardiff

Sports Direct kicked off the year by opening the doors to its fourth flagship in Cardiff.

The 60,000sq ft store was the first to debut the retailer’s new outdoor concept, which includes a terrain tester, weighted bags, a lacing and packing guide.

Spread over three floors, Sports Direct Cardiff also houses several specialist sporting areas for football, rugby and running, as well as dedicated areas for Game, USC and Evans Cycles.

Frasers Group managing director of Sport Ger Wright said: “As we continue to elevate our unique proposition, the opening of our new Cardiff flagship store marks the launch of our eagerly anticipated new outdoor category concept as it continues to be a growing area of interest for our consumers.

“As the appetite for outdoor adventurers increases, we want to provide our consumers with an unrivalled retail experience through trail running, trekking, hiking and beyond.

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The self-made billionaire had planned to keep the retailer online only but quickly shifted gears following a nationwide campaign for the brand to return to the high street.

“I was amazed at the love for the Wilko brand…especially in the north, it was like a bloody national outcry.  I’m pleased to own it and I’m quite proud to make it work again,” he tells Retail Gazette at the retailer’s latest store opening in Poole.

“It would be an absolutely cardinal sin to not keep this brand alive,” he affirms.

But, as Dawson says, it is now “well and truly alive” and is “getting all the investment”.

Now with six stores under its belt, and the first five turning a profit, the blueprint for Wilko 2.0 is now firmly in place. Dawson says “it’s all systems go now” and has grand ambitions, with plans to open up to 300 Wilko stores over the next five years.

What does Wilko 2.0 look like?

The retailer has taken a somewhat cautious approach to reopening the Wilko brand on the high street, with Dawson sharing that the team “purposefully held back” while rival discount chains such as Poundland that acquired former Wilko outlets rushed to reopen them.

However, for The Range owner CDS – which stands for Chris Dawson Superstores – the first set of openings have acted as a trial for the Wilko team to test new store concepts, with group chief digital and marketing officer Ben Exall revealing the Poole opening marked the start of its rollout phase.

The team has been tweaking the product mix in store after and Dawson admits it didn’t have enough essentials in its first tranche of stores.

“Wilko was extremely famous for health and beauty, cleaning and toiletries, and your sort of bits and bobs DIY – you’re not expecting a full garden set,” he says.

The first three stores in Exeter, Plymouth and Luton boasted more branded products than ever before, a larger space dedicated to seasonal products, and a bulked out in-store home and DIY section.

Exall says: “The first five stores are all about test and learn, trialling new things, asking customers for feedback. Customers told us they wanted more health and beauty and more cleaning, and that’s what this [Poole] store has got.”

Its new owner has also brought back Wilko’s food-to-go range, which its previous management pulled over concerns it wasn’t able to compete with the top supermarkets, and has also introduced a new in-store partnership with Iceland.

Dawson says the team have now got the product mix right in store and adds that in six months “you’ll find 80% of your Wilko products again”.

Exall adds the business has also been expanding its arts and crafts ranges, and food and garden products, as well as investing in more peripheral services “to ensure that customers don’t split their wallet across multiple retailers”.

“We do insurance, we do tool hire, we do key cutting, we do lottery,” he says. However Exall emphasises: “They’re not the reason to come to us. The reason to come to us is your essential everyday product and that’s what we’ve been investing in and increasing our ranges.”

The group is also planning to expand its Café Eighty Nine concept to more of its stores following a successful trial in the Exeter branch.

Ready, steady, go

To help with the retailer’s expansion across the UK, the business recently hired Matalan’s property director Antony Darbyshire to head up the rollout.

Dawson shares “there’s a hell of a lot of stores in the pipeline”, adding that the team have hand-picked the locations and are “aware of what was good and bad for Wilko” previously.

He is tight-lipped on new store locations but he believes the new Wilko format will work far and wide. Dawson says it will target “all the obvious ones in Liverpool, Manchester and all the big cities but [the store concept] will do the Loughboroughs in this world too”.

London will also see the return of Wilko, he promises, as Dawson shares the brand has “already got a massive internet presence there”.

Online has a big role in CDS’s plans for reviving the brand and according to Dawson’s predictions, its ecommerce platform will soon “treble in size”.

The retailer recommenced trading online less than a month after it was snapped up by CDS Superstores, with a website featuring thousands of product lines across the home and garden.

It has quickly expanded to over 100,000 products in 10 months, boosted by Wilko’s first-ever kitchen range, which launched in April, followed by a bathroom range.

Exall says the site now turns over “double the amount” than it did before and its most recent home ranges are “performing strongly”.

The group has bolstered Wilko stores’ digital capabilities and installed self-service terminals points around the shopfloor to allow customers to browse and shop online.

The retailer has also piggybacked off sister brand The Range’s 200-plus store footprint to boost its click-and-collect reach, which is available across both retailers within an hour. The group is also selling Wilko-branded products in The Range’s stores, which Dawson says are “selling like hell”.

The owner shares there more developments on the brand’s click-and-collect service are in the pipeline, including its first collection truck at the upcoming Motocross GP festival this weekend.

“We’ve got lots of orders already,” he says, explaining the group will be bringing in back up stock as it has “one truck completely sold out”.

“They always forget things with their campers,” he notes, explaining the high demand for the service.

“We might be on to something big here,” says Dawson, as Exall jokes “watch out Glastonbury”.

Growing his empire

Larger-than-life self-made billionaire Dawson is known as Del Boy thanks to the distinctive DE11 BOY number plate on his Rolls-Royce, and shares a similar story to his Peckham-based idol.

He started off as a market trader before setting up The Range in his Plymouth hometown in 1989.

Dubbed the working man’s John Lewis, the home, garden and furniture specialist has grown to more than 200 stores across the UK and has netted Dawson a rumoured £2.5bn fortune in the process.

The Wilko acquisition has grown his retail empire, but does he see the opportunity for further expansion?

Last month, The Range owner was reported to have approached Homebase owner Hilco Capital about acquiring the up-for-sale DIY chain.

However, the retail entrepreneur shrugs off the speculation: “We look at every brand. We’re not looking at it no more than anybody else,” he says in his West Country accent.

“We’re looking at loads of things – any angle to open more stores and different brands,” he explains. However, he adds: “I think they put two and two together and made nine.”

That said, when asked where he sees an opportunity to expand his retail portfolio, Dawson identifies garden centres as a ripe area.

“Standalone garden centres, but we have our hands full rolling out [Wilko]. We’re not looking for more work, but garden centres will be the next obvious one for us.”

Watch this space to see if Dawson and his team can work their magic on another retail business. After all, he who dares wins.

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As the gymwear giant prepares to open its second store in Westfield Stratford this weekend, CEO Ben Francis speaks to Retail Gazette on his expansion plans as he looks to make Gymshark “a globally iconic brand”.

Learnings from its first store

Gymshark first entered the world of bricks and mortar back in 2022 when it opened the doors to its highly anticipated Regent Street store.

The much-hyped store has garnered results.

Francis says: “I’ve been blown away by how well it’s done, both in terms of the commercial performance of the store, but when you add on the events that we’ve run and the community that we’ve been able to build, and the people that have gone in and purchased in the store before purchasing online as well.”

Cracking the world of physical retail is no mean feat for the online specialist. “We hadn’t run a store before and we didn’t really know how it would go. It was very much ‘we’ll see how it goes’ and then hopefully we’ll be able to do more  – whereas now Regent Street has been incredibly successful.”

“We’ve learned that the customer loves events, and they love to be able to touch and feel the product and try the product on which is great as well.”

As the brand readies to open its Westfield Stratford City store this weekend, Francis explains that much like Gymshark Regent Street, its new store will house specific events in the space – from athlete meet and greets to activations.

“It’s a slightly different shopping experience to Regent Street. This is a smaller, more shopping focused and more product focused space”, which he says will enable it to highlight different product ranges.

Store expansion

It comes as no surprise that Gymshark is looking to open more stores on the back of the success of Regent Street – but Francis plans to be picky.

“I want great locations that are in places that our customers are, that really allow us to showcase the brand,” he says. “We are actively looking across the UK, the US, and Europe, but we are committed to finding the right units before we agree to anything.”

He explains that Gymshark will be “unit-led” rather than targeting store numbers or specific locations.

“Rather than saying, ‘We’re going to open a store in Manchester,’ we need a really great unit,” he says.

Internationally, the US is a big focus as it looks to double down on its biggest market.

“We’re actively looking around the world. But again, it’s all about finding that right location. The US is our biggest market and also our biggest opportunity,” Francis explains.

“It’s the biggest fitness market in the world, and our goal is to become a globally iconic British brand. We want to be known not just online but across all facets of the market, and that requires a strategic presence in key locations.”

Each new store will be designed to host specific events, and meet-and-greets, ensuring that Gymshark’s community-building efforts are consistent worldwide.

“We want to take learnings from our existing stores but also adapt to local nuances,” Francis says. “In the US, stores might look slightly different due to product or local preferences, but the core experience of community and high-quality products will remain the same.”

However, he says it is “still really focused on the UK”. “We’ve got two stores in the world, both here. Our headquarters is in the UK and there’s no plans on changing that at all. My dream is for us to be a globally iconic very British brand. I want it to be iconic all around the world”.

Digital pioneer Francis, who set up Gymshark as a 19-year old in 2012, is clearly a convert to the world of stores

He says they help to “really showcase the product”.

“It’s making the product more available, because there’s still a large proportion of customers that don’t shop online. The the fact that someone can walk through this shopping centre (Westfield Stratford) which is one of, if not the busiest shopping centres in the UK, and think ‘I’ve seen Gymshark online, let’s pop in have a look at the product’ – that’s where stores really worked for us.”

With one store open so far, Francis admits that it accounts for a “very, very small” amount of the brand’s sales but he says “it will inevitably be a growing percentage over the next three or four years.”

However, he promises Gymshark is “not going to go and open 50 stores next year”.

The power of community

Since its inception, Gymshark has managed to develop a strong community and culture around its brand, almost reaching cult status.

Francis says events are key to growing that community as it expands, adding that “Gymshark is “really, really focused on the community and the purpose of our brand and our products”.

Last month it launched its new brand platform ‘We Do Gym’ in a bid to “deliberately position” the business as a gym brand first and foremost, setting itself apart from athleisure rivals.

The new platform acts as the foundation for all of its brand and marketing activity for the coming 12 months, specifically designed and named to tell everyone, including existing members of the community, what Gymshark is all about.

Francis explains: “I think the risk of losing that community becomes larger when we overexpand and try be something for everyone.

“‘We Do Gym’ is us saying, we’re not going to focus on sportswear, for example, we’re just going to do gym.”

The launch has been met with praise, which Francis calls incredible, because the campaign harks back to the roots of the brand.

“There’s so much temptation to over expand. Expand your product range, expand your brand, expand commercially and by putting these natural constraints on the business by saying this is what we need to be focused on one, it helps us in terms of our allocation of resources internally and focus on being really good at one thing rather than average at lots of things.”

He stresses that it also makes communication to the customer “really simple and really easy and people can know what Gymshark stands for within two seconds of seeing it”..

Expanding horizons

Earlier this year, Gymshark officially opened a permanent space in Selfridges in London and Manchester Trafford Centre as the department store became the activewear giant’s first-ever wholesale partner.

The Gymshark spaces, which appear in both the women’s and men’s departments, feature a selection of mainline products, popular best-sellers, and exclusive limited-edition ranges, including its first premium athleisure range.

Francis says: “I think Selfridges is an amazing business. I want this to be a globally iconic British brand and Selfridges is a globally iconic British brand. So partnering with a great brand like Selfridges is only beneficial to both parties”.

He adds that it also gives Gymshark an opportunity to showcase its brand to a slightly different consumer, which he says has “been incredibly successful”.

Earlier this year, the business appointed former Adidas global VP Hannah Mercer to the newly created role of general manager for wholesale and retail.

In her role, Mercer will be responsible for the growth of the business across all physical channels “to represent the best of the brand globally”.

Francis says her appointment ties into its international expansion plans.

“We see a big opportunity for Gymshark to be an omnichannel brand around the world and like I said before, being a globally iconic brand. Globally iconic brands don’t just exist online. They exist in all of the different facets of the market and that’s what we now need to do. Go from being an online brand to a true omnichannel and a global brand.”

Francis is clearly on the right track as the brand that he started in his bedroom at the age of 19 is now valued at $1.45bn. With more stores in more countries on the horizon, that hefty valuation may grow even higher.

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The garden centre chain is thought to have faced another difficult year after racking up losses of £130m last year driven by high inflation and unseasonable weather dampening sales.

It is not the only retailer that sells garden goods that finds itself in a tough spot, with Homebase CEO Damian McGloughlin informing staff in late August that it was seeking new investment in the same week that it offloaded some of its store estate for a £130m cash boost.

What is going on in the world of garden centres?

Dobbies decline

Dobbies has been working with advisers at FTI Consulting on a restructuring plan that will see it close 17 stores – including all six of its Little Dobbies urban format – taking its store count down to 60 shops in a bid to “address historically uneconomical rent costs and ensure a return to sustainable profitability”. 

It will also seek rent reductions at nine further sites. It said that this, alongside “other tangible cost savings” will help it secure “its long-term future…allowing access to future investment”.

The proposals are subject to approval by creditors, and it is understood if they are not green lit then an insolvency process of some kind is likely.

It comes as the gardening retailer reported pre-tax losses had plunged to £130.8m in the 52 weeks to 5 March 2023 – a steep drop from the £21.3m loss the year before.

Sales fell 8% to £278.7m, which it attributed to the impact of “adverse weather in Spring 2022 exacerbated by the macroeconomic conditions”, as well as a delayed refinancing of its debt facilities, which involved short-term cash preservation such as discounting of stock and reduced intake that in turn affected product availability.

While Dobbies seemlingly puts some of its woes into its “historically uneconomical rent” costs, however, property expert, JDM chief executive Jonathan De Mello, argues that some of Dobbies’ issues are “of its own making”, such as its acquisition of 31 Wyevale garden centres and other smaller chains pre-Covid.

He also suggests that Dobbies investment in a new store format in 2019 “was an expensive undertaking which has not yielded the level of return on investment they perhaps had hoped for”.

Former Dobbies chief executive Nicholas Marshall agrees with De Mello that part of its challenges are self-inflicted, claiming that the business has lost sight of its core customer.

Marshall, who managed the retailer between 2017 and 2019, says that when he joined the garden centre chain its “biggest seller” was its 10-piece breakfast available in its restaurants.

“How does that fit into the middle age, middle class market? It doesn’t. It fitted into builders coming in for their breakfast,” he says, adding that at the time its in-store concessions were also “quite down market”.

A year after Marshall stepped down, the garden centre which was owned by Tesco until 2016, teamed up with Sainsbury’s to launch the grocer’s own-brand products in its sites.

Dobbies later replaced its Sainsbury’s concessions with Waitrose in 2022, which now operates shop-in-shops within 47 of its stores.

Despite the shift to cater to a more affluent customer, this summer the retailer opened outlets at its branches in Morpeth in Northumberland and Atherstone in Warwickshire, offering between 30% and 70% off products from across its homeware; outdoor living; gifts, kids and pets; and gardening range.

Homebase up for sale…again

Homebase boss McGloughlin informed staff at the end of last month that the business will “be starting conversations with potential new investors to fuel our next chapter of growth”.

“I have agreed with [current owner] Hilco that now is the right time for me to seek new investment and consider new ownership and next week we’re likely to begin an active sale process,” he told suppliers.

“What this does mean is that we will have the opportunity to explore the market and potentially benefit from fresh investment.”

His comments come days after it agreed the sale of 10 of its stores – equal to 235,000 sq ft of trading space – to former owner Sainsbury’s in a deal valued around £130m.

The move may have come as quite a surprise to many, but the garden and DIY chain has been finding ways to downsize its 140-plus store estate in the last year.

The chain’s Ledbury branch is set to be taken over by discount giant Home Bargains, while its Waltham Cross location was split for German discounter Aldi to take up half the unit.

Homebase’s search for a new investor coincides with its £95m asset-based loan from Wells Fargo expiring in December and follows reports that the retailer’s owner Hilco put the chain back up for sale in February.

The Range and Wilko owner Chris Dawson was reported to be considering putting forward an offer on the chain, however the retail entrepreneur quashed speculation last month.

“We’re looking at loads of things – any angle to open more stores and different brands,” he explained. However, he added: “I think they put two and two together and made nine.”

The ‘For Sale’ sign comes after the retailer plunged to a £85.2m loss in the year to 1 January 2023, down from the £55.6m pre-tax profit it made the year before, as sales dropped 11% to £701.2m.

Homebase has had a tumultous recent past. It was sold to private equity giant Hilco for just £1 in 2018 after Australian giant Bunnings’ botched attempt to conquer the UK by converting Homebase to its fascia.

Following the Hilco acquisition, the retailer immediately launched a CVA and restructuring programme, which resulted in 42 shop closures and more than 1,000 jobs cut.

Under ex-B&Q retail director McGloughin, Homebase’s fortunes were seemingly turned around. The DIY retailer posted a £3.2m EBITDA profit for the year ending 29 December 2019, up from a loss of £114.5m in 2018. This grew further the next year with EBIDTA hitting £61m before exceptionals.

However, in its last reported financial year, things had taken a turn for the worse as the cost-of-living crisis meant shoppers became more “cautious” with their spending.

The business posted an £84m loss in the year to January 2023, from a profit of £30m the year prior as sales plunged 11% to £701m.

It described 2022 to 2023 as a “challenging year for Homebase and retail”. The retailer said: “Customers were cautious in their spending, our costs increased significantly, including over £40m across freight and £10m on energy bills, all while consumer confidence was at an all-time low.”

However, earlier this year a spokeswoman for Homebase said it was “encouraged” by trading after its year end, which had seen the chain “reducing our losses by 70% and growing market share in over half of our categories”.

“We’re looking forward to delivering a profitable 2024 as we enter our peak trading season,” she said.

Garden centre woes

The challenges are not exclusive to Homebase and Dobbies, with the wider gardening sector also feeling the brunt of the cost-of-living crisis and weakened consumer demand.

British Garden Centres development and project manager Amy Stubbs says the weather has played havoc on trading this year.

“It’s never really felt like the season has properly started. We always normally feel like we have a bit of a rush and we can tell that the season’s kicked in.

“But this year, it hasn’t ever felt like it’s got going. It almost feels like any time it’s had a chance to start, the weather has then ruined it and it’s gone backwards again. It’s just been very stop start.”

While Dobbies has been facing the same challenging landscape, Homebase is part reliant on demand for DIY and big-ticket items., which has been hit hard this year.

GlobalData lead analyst Emily Salter says: “The DIY market fell by 0.3% in 2023 as consumers had already made any improvements to their homes during Covid-19 lockdowns, and due to the weak housing market and low consumer confidence for purchasing big-ticket items.

“These trends continued into the first half of 2024, impacting DIY demand.”

These trends will have also hampered gardening spend. However, there are some signs that the market is improving.

Nationwide Building Society reported this week that annual house price growth accelerated in September to the fastest rate seen in around two years as interest rates fall.

An uptick in housing transactions, might give the gardening market the boost that all chains, not just Dobbies and Homebase, are craving.

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Speaking at the inaugural BRC x H&M Fashion Sustainability Summit in London earlier this year, Marcus Hartmann, head of public affairs & sustainability for H&M in Northern Europe, highlighted how the retailer is embracing transparency, seeing it as an opportunity to improve rather than something to shy away from.

“We want to be transparent because we think it’s important, and it also opens us up to scrutiny and investigations, which we welcome,” said Hartmann. “These things push us to do even better and hold ourselves accountable.”

H&M has been publishing detailed sustainability reports for over two decades, providing a comprehensive look at its supply chain, environmental impact, and progress on various initiatives. The fashion retailer also publishes its full supplier list on its website.

However, Hartmann acknowledges the significant challenges that H&M and the wider fashion industry face in pursuing sustainability goals.

For example, as part of its circular fashion initiative, the fashion giant rolled out design strategies to reduce waste through its Conscious Collection, the range, which closed in 2022, incorporated organic, recycled, or sustainably sourced materials. It has also launched a clothing recycling programme.

“At the end of the day, we still need to act. We need to change because we’re at a tipping point. It’s happening, and we need to act now,” he added.

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Despite these initiatives, H&M has faced scepticism and lawsuits, particularly following accusations of greenwashing. In 2022, the retailer was criticised after reports revealed that its product scorecards, designed to inform customers about the environmental impact of its items, were misleading.

The scorecards allegedly misrepresented the environmental benefits of some products, prompting H&M to withdraw the initiative and reassess its sustainability claims.

This controversy is not the first time H&M’s environmental efforts have been questioned, as critics point to the inherent contradictions in the fast fashion model—where mass production and rapid turnover of styles often undermine sustainability goals.

While H&M’s Conscious Collection, which featured items made from organic and recycled materials, was a step forward, it only constituted a small fraction of the brand’s overall product line, which could’ve been a reason why the line was shuttered.

Additionally, its garment recycling programmes, though promising, have faced criticism for not achieving the scale necessary to significantly impact waste reduction.

In response to these concerns, H&M has begun disclosing the environmental impact of each product and providing more details on the attributes that reduce an item’s environmental footprint.

As the retailer continues to push forward with ambitious goals—such as its pledge to use 100% sustainable or recycled materials by 2030 and become climate positive by 2040—the question remains whether these efforts will be enough to overcome the inherent contradictions of driving sustainability at a fast fashion retailer.

H&M’s willingness to embrace transparency and address past missteps may help it regain consumer trust, but true sustainability will require the company to rethink its entire business model, not just implement surface-level changes.

“Transparency is our responsibility,” Hartmann explained. “We can’t shy away from challenges. We need to keep pushing ourselves.”

This commitment to continuous improvement and openness could be key to ensuring that H&M’s sustainability efforts are more than just a marketing tool, but a genuine path towards a more sustainable future for fashion.

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