Following the news that Ted Baker will close its remaining 31 UK stores this week:

Pippa Stephens, Senior Apparel Analyst at GlobalData, a leading data and analytics company, offers her view:

“The closure of Ted Baker’s stores has been a long time coming, with its product offering having significantly lost relevance among consumers. As well as its ranges mainly focusing on formalwear and occasionwear, despite the boom in demand for casual apparel, its distinct product handwriting also fell out of favor, as its heavily patterned designs prevented it from tapping into consumers’ growing preference for minimalistic styles and capsule wardrobes. Despite its relatively high price points, Ted Baker also does not have particularly strong quality perceptions, with these factors causing its premium positioning to be tainted by aggressive discounting.

“The loss of Ted Baker from British high streets will create opportunities for other premium players, as its former shoppers continue to seek high quality apparel elsewhere. Those most likely to benefit include the likes of Reiss, Whistles and Phase Eight, with their more formal collections and similar customer bases standing them in good stead.

“Though the retailer’s international and licensing divisions are expected to remain in operation, they will now be marred by Ted Baker’s damaged brand image, especially its childrenswear and lingerie lines run by Next in the UK. Should Next choose to continue this licensing agreement, it must ensure it modernises and elevates the designs of these products to help reverse shopper perceptions. It is also crucial that it justifies its higher prices through superior quality and fit, as consumers continue to be more selective over their purchases amid economic struggles.”