This week it has been announced that BHS is to close its doors for the very last time, with the loss of 11,000 jobs and 164 stores nationwide. The closure was announced after a rescue bid failed to find a viable buyer.

British Home Stores has operated for over 88 years, established in 1928, they have been a giant of the retail world. So, what happened? And more importantly, what can other retailers learn from this to avoid the same fate?

Failure to follow trends

It doesn’t matter what products you deal in, or the size of your company, if you fail to follow trends the end will always be nigh. BHS failed to keep their offering on trend with modern needs, especially when it came to fashion. Offering 3rd party brands would have been one avenue to look down.

What can independents learn from this? Keep stock of where you are at, and pay attention to customers. When you’re constantly being asked for an item that you don’t stock, maybe it’s time you started stocking it. The retail landscape is fluid. Don’t get left behind.

 

Failure to differentiate

BHS started to be overtaken by other retail giants, such as John Lewis and IKEA. The problem? BHS had nothing unique to keep shoppers coming back. They weren’t particularly cheap, nor overly stylish, they found themselves in no man's land when it came to target markets.

What can independents learn from this? Everyone has competitors, maybe not of John Lewis’ size but competitors nonetheless. Try to be unique, make sure your store has something that’s better than anyone else’s. Whether that’s in terms of price, quality or service is up to you to decide, just don’t find yourself stuck in the middle.

 

Failure to invest in technology 

Of course, BHS has a website, however, technology has never been at the forefront of their strategy. This has come back to bite them in the long run. Whilst other retailers have inputted massive chunks of their marketing budget to develop their presence online and their technologies in store BHS simply did the bare minimum. Not only was this BHS’ downfall, it’s been a contributing factor to many retail giants going under in recent years... Blockbuster, for example, turned down the opportunity to buy Netflix once upon a time, what a mistake that turned out to be. 

What can independents learn from this? Of course, it’s not quite as simple for independent retailers. However, it’s worth putting some thought into your company’s technology. Websites are not simply the domain of big business, in fact, they have become something the modern customer expects. A good website might cost a bit but think of it as an investment to the future of your business.

 

Whilst the closure of BHS is, of course, a shame for British business; retailers need to take stock and learn from their mistakes. The world is changing, and so we too must change.

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