Opinion: "Investing in the Future"

Brand environment is a worthwhile investment, argues Micheal Longmore. But it's nothing without the right proposition to back it up.

Why do some retail concepts thrive while others wither on the vine? A sweeping statement might say it’s a failure to invest across the board; brand, stores, marketing, product, service, people. However, it’s something more than that.

If you look at the demise of Austen Reed for example, how did this one-time bastion of middle English respectability – where everyone’s father went to kit himself out – end up teetering on the brink of extinction? The need for a decent suit and something for the weekend is still there, but who goes to Austen Reed anymore?

Conversely there is Hackett, which seems to have taken over much of Austin Reed’s space, and has results moving nicely in the right direction. The brand has invested in great looking store interiors, lovely products and has pitched its prices at the right level.

Likewise, Selfridges has again announced a good set of results, and is now planning to plough a large amount of its profits back into refurbishing its Oxford Street flagship. Appearance is important, rather than trying to eke out another year’s profit, Selfridges addressed the issue and updated before the stores started to look shabby. Rather like top hotels, these brands only stay at the top if they continually reinvest in the fabric of their buildings.

If it’s as simple as borrowing some cash from the bank, surely all retailers can make the move to be a success? But it’s not that easy. The investment must be spent wisely, Austin Reed spent millions on the refurb of its flagship store, but not on the development of its range or of its brand proposition. Its original, faithful devotees were getting older and no one bothered to speak to the next generation.

Today, you can get value online but you don’t get the same level of service, or the feel of something special, that you get perusing unique and carefully-curated smaller shops. The supermarkets are about to start investing in their stores again, and it’s about time too – consumers are fed-up with the drab.

As it stands, the middle market has some strong players, I’d say that in two years Diesel, Hackett and Jack Wills will still be going strong. But what about the likes of Abercrombie & Fitch or Hollister? They should invest in some serious brand development, add new lines and update stores, or they may suffer the same fate as poor old Mr Reed.

Michael Longmore is the director of Fishpie Design Agency.