Following today’s news (Wednesday 12 June) that Arcadia’s CVA proposal has been accepted,
Chloe Collins, Senior Retail Analyst at GlobalData, a leading data and analytics company, offers her view on the retailer’s CVA which was approved by creditors today:
‘‘Although Arcadia’s CVA has been approved, it is unsurprising that it faced backlash from some landlords who have doubts about the retailer’s future. Its leading brands – Topshop and Topman – still have a strong following among millennials, however many of the other, such as Miss Selfridge and Dorothy Perkins, are now irrelevant in a highly saturated market and chances of revival are slim, leading landlords to question whether other retailers could offer their spaces more longevity.
The decision to add Topshop and Topman to ASOS’ branded offer as part of Arcadia’s turnaround plan is wise to increase the brand’s reach, especially internationally, however it is crucial that the £60m invested into advancing Arcadia’s digital platforms includes competitive and convenient delivery methods to rival ASOS and maintain traction on the brand’s individual sites. The £75m invested from Green into its physical stores however is going to be too thinly spread as the agreed closures still leave Arcadia with an estate of around 500 stores which have been neglected for far too long and are now unable to match competition which moves in favour of experience-led shopping.”