The collapse of the iconic vintage clothing brand, Cath Kidston, is a hard reminder of the difficult retail environment that many brands are currently facing. Earlier this week, retail giant Next snapped up the fashion and homeware retailer out of administration for a sum of £8.5 million. The vintage clothes retailer joins the list of prominent but troubled retail brands, including Joules and Made.com, which have been saved by the retail giant.
The collapse of the iconic vintage clothing brand, Cath Kidston, is a hard reminder of the difficult retail environment that many brands are currently facing. Earlier this week, retail giant Next snapped up the fashion and homeware retailer out of administration for a sum of £8.5 million. The vintage clothes retailer joins the list of prominent but troubled retail brands, including Joules and Made.com, which have been saved by the retail giant.
So what actually went wrong with Cath Kidston to end up in administration? A series of events ultimately led to the downfall of the once beloved brand, from the departure of its founder, Cath Kidston, from her role as chief creative designer in 2014, to the departure of CEO Kenny Wilson and CFO Neil Harrington in 2018. To combat the decline in consumer spending driven by cost of living pressures and rising costs, the company explored the idea of the sale of Cath Kidston, which resulted in the takeover by Next.
But wasthe acquisition the right move? Here’s what others can learn from the decline of Cath Kidston:
Cath Kidston was a “marmite” brand, meaning that people either loved it or wanted to stay away from it. Its limited product offering, which reflected on its limited audience, was one of the reasons for its downfall. Retailers should take the time to understand their target market and what they are looking for, in order to create successful product offerings.
With rising costs of living, UK consumers have been attempting to cut back on unnecessary expenses. Retailers should be aware of the price points in their product ranges and ensure that the prices are competitive in order to attract and retain customers.
Cath Kidston was once a hugely in-demand brand, but over time it fell out of fashion. Retailers should take the time to understand the changing trends and adjust their product offerings accordingly.
Cath Kidston was taken over by retail giant Next, who have utilized their resources to market ownership of the brand to its online and in-store customers. Retailers should take advantage of their resources, such as the right customer data, marketing tools and technology, to create a successful customer acquisition and retention strategy.
Despite Cath Kidston falling out of fashion, there are still many customers who are nostalgic for the brand and could fall back in love with it if it is presented in the right way. Retailers should understand the power of brand loyalty and work hard to build relationships with their customers that last.
The downfall of Cath Kidston serves as a reminder of the difficult retail environment that many brands are facing. It is important for retailers to understand their customers, take advantage of their resources, watch out for changing trends, and not overprice their products in order to be successful. By taking the time to understand their target market and creating successful product offerings at competitive prices, retailers can ensure that their brand is here to stay.
