01st December 2020

Melissa Minkow, Retail Industry Lead at digital consultancy CI&T:

“Arcadia’s collapse into administration under the pressures of the pandemic is a major blow for the UK High Street – especially when years ago Topshop was a best in class example of retail innovation. There are a few different variables at play that could serve as great lessons for other retailers currently succeeding.

“Firstly, most of the brands under Arcadia Group, especially Topshop, sit in the mid-range for price points. We've seen mid-priced retailers struggle across the board because of the massive rift between low- and high-income groups. As the middle-income demographic shrinks, so does the success of mid-range retail.

“On a similar note, Arcadia Group's brands' failure to identify with either fast fashion or more quality, high-end messaging means a failure to connect with consumers at a values-based level. The brands have been experiencing a sort of identity crisis for a few years, making it difficult for shoppers to place these retailers within their lifestyles.

“Beyond the increasing irrelevance of mid-tier retail, the lack of digital innovation is certainly a key culprit. Arcadia Group's decision to leverage more of a brick-and-mortar backbone, investing less than it needed in keeping up with social and e-commerce, allowed it to fall behind in establishing the omnipresence possessed by its rivals. Digital commerce is constantly evolving, and retailers that maintain more of a transactional, versus experiential, online platform are falling behind fast.”