In Picture: Retailer hits and misses of 2015

With the end of the year just around the corner, FashionUnited takes a moment to look back upon the year and highlight which fashion retailers have managed to leave their mark in 2015 and which ones managed to slip though the gaps of the fashion wheel.

Fashion Retailer Hits

John Lewis

British high street department store group John Lewis has enjoyed quite a successful year, which saw the group sign a deal for its European debut in the Netherlands with department store group de Bijenkorf, open in Birmingham’s Grand Central Shopping Centre and pledge to invest 500 million pounds in its online operations. Although a number of UK consumers may have been annoyed with Andy Street’s decision to introduce a 2 pounds charge for click-and-collect services earlier this year, it did not stop the group from witnessing it’s largest sale week in its trading history in November, with Black Friday being singled out as the biggest day of trading.

Selfridges

Another British high street department store to enjoy its highest profit in trading history this holiday season is premium retailer Selfridges. On Boxing Day, (December 26) Selfridges recorded its most profitable hour in its 100 year history, taking in over 2 million pounds by 10 am. The department store group also reported record profits for the year ending January 2015, with gross sales of 1.8 billion euros and acquired Dublin department store Arnotts for an undisclosed sum this year.

Primark

2015 proved to be a pivotal year for Irish value fashion retailer Primark, as the group made its debut in the US this September. Opening its first store in Boston, Massachusetts, Primark continued its expansion scheme by adding close to 1 million square feet to its global retail portfolio throughout the year to September 12. However, its foray into France proved to be the biggest success for the fashion retailer, with the country being highlights by parent company ABF as Primark’s “most successful new market entry to date.” By the end of the fiscal year, Primark counted an impressive 293 stores across the global and a 13 percent sales increase year-on-year, which all undoubtedly contributed to the retailer’s award winning at this year’s World Retail Awards in Rome for best retail transformation and reinvention, as well as its chief executive Paul Marchant being named outstanding leader of the year.

Shop Direct

With the launch of Shop Direct’s standalone luxury website VeryExclusive.co.uk, parent company Shop Direct managed to ensure 2015 was quite a successful year for the group. Led by managing director Sarah Curran, VeryExclusive.co.uk (sister site to Very.co.uk) has grown over the year, boosted by a partnership with the British Fashion Council. The success of Very.co.uk, Littlewoods.co.uk and VeryExclusive.co.uk has help the group enjoy a strong year led by a 78 percent increase in pre-tax profit to 71.7 million pounds for the financial year ending June 30, 2015.

Fashion Retailer Misses

Sports Direct

2015 provided to be a difficult year in retail terms for Sport Direct owner Mike Ashley, as the sportswear company was accused of foul play with both employment practices and discounting. Falling under the ill graces of Channel 4 Dispatches and The Guardian, the sportswear retailer was accused of misleading its customers with its false discounting practices and of mistreating its warehouse staff by failing to pay them the minimum wage after a series of investigations. In addition, Sport Direct has come under fire for its continual use of zero-hour contracts and the treatment of employees at USC’s Dundonald warehouse after the young fashion retailer entered into administration earlier this year.

American Apparel

Things have been sliding for a long time now a US fashion retailer American Apparel, but 2015 proved to be the year of undoing for the Made in the USA fashion chain. Since its founder and former CEO Dov Charney was ousted in December, 2014, thing seem to have gone from bad to worse under the reign of the Paula Schneider, who was appointed to succeed Charney. In the midst of numerous lawsuits between American Apparel and Charney, the company filed for bankruptcy protection in October - a move which would place the company in the hands of the Standard General hedge fund. According to a statement from the company, retail stores - both state side and overseas - wholesale operations and US manufacturing are to continue to operate as normal under the restructuring deal made with 95 percent of American Apparel’s secured lenders, which is predicted to be completed early 2016. However, since the announcement the company has quietly been closing a number of its 136 US stores, including locations in New York.

Bonmarché

After struggling through a “difficult” first quarter for the year, value fashion retailer Bonmarché went on to lower its full year profit predictions to between 10.5 million pounds and 12 million pounds for the year to the end of March, 2016. The move came after the retailer proclaimed in November that its expectations for the year would remain unchanged if trading conditions held steady. However, in December the company revealed that trading conditions had become “very challenging” since Black Friday and were likely to remain so throughout the holiday season. December also saw the exit of chief executive Beth Butterwick, who left Bonmarché to take the helm up at Karen Millen.

East

Womenswear retailer East may have been saved in a pre-packaged administration deal earlier this year, but it cost the company 19 stores and five concessions. 155 jobs where also axed as part of the deal, which saw 550 roles being saved. The retailer continues to operate 82 stores and concession stands, alongside its webstore and blames the “shift in consumer spending” as part of its fall into administration.

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