Following yesterday’s news (Thursday 20 June) that Monsoon Accessorize has launched its CVA proposal, Pippa Stephens, Retail Analyst at GlobalData, a leading data and analytics company, offers her view:
“While Monsoon Accessorize is seeking rent reductions at just over half of its 258 UK store estate, the failure of the retailer’s 2016 strategic overhaul brings into doubt the future viability of its brands and their ability to regain relevance among shoppers.
“Monsoon’s downfall has been its limited brand appeal, high prices and increased competition from newly emerged players such as Sosander, Mint Velvet and Hush – making customer acquisition and driving loyalty a challenge. However, its sister brand Accessorize has potential to win back shoppers, as long as it introduces more fashion forward ranges and increases its social media presence to attract younger consumers and compete with competitors such as Primark.
“The retailer previously put its CVA plans on hold to await the outcome of Arcadia’s CVA vote last week. The evident backlash from Arcadia’s landlords has clearly influenced Monsoon Accessorize’s decision to offer its landlords up to £10m annually if it can ‘trade profitably and above forecast in future years’, as it becomes increasingly apparent that a green-light for CVAs is not always guaranteed.”