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What’s the future of the high street?

by LLB Editor
19th Jun 20 9:49 am

Traditional High street brands with a lack of online presence that have been struggling due to Covid 19 need to partner with those who have embraced new technology, say leading tax and advisory firm, Blick Rothenberg

Daniel Burke, a partner at the firm said, ” It’s either that or they will get taken over. There is a new shift in power which was evidenced this week when online fashion giant Boohoo, which has no physical presence on any high street, announced that it was to buy former high street businesses Oasis and warehouse.

The deal will bring the number of brands within Boohoo’s fast-growing empire to nine, which also includes Coast and Karen Millen.  Boohoo was set up in 2006, but it now has a market value of almost £4.7bn, making it more than double the size in market capitalisation terms of Marks & Spencer.

He added: “ In recent years the successful retail companies have predominantly been e-commerce.  They appeal to the younger market, but during lockdown all age groups have become familiar with shopping online.  Older established companies that have operated mainly from the high street have fallen behind.

“ We may therefore see more and more big brand e-commerce businesses taking over well-known, but failing brands that have not caught up with the modern world.  Without a strong online brand presence businesses will clearly struggle.

Daniel said: “ In addition to Boohoo we have seen The Hut Group grow rapidly in recent years, and it now operates over 100 international websites selling Fast-moving consumer goods.  It was founded in 2004 and is now valued at more than £2.5bn.  The Hut Group has pursued an acquisition strategy of mainly taking full ownership of E-Commerce businesses in a variety of retail sectors and putting the websites onto its proprietary technology platform.”

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