Debenhmans: The end of an era

Debenhams has named 22 stores that will close next year as part of a plan to turn around its fortunes that will eventually see 50 branches close.

For most of us who have been knowing the store for over two decades and more, have painfully seen how it has gone down from being an aspirational store to just trying to chase it's customers away. So definitely it is no surprise! but yes it saddens to see a 250years old store going bust.

In fact, not only Debenhams but a lot of other stores too have also been going the same route, their efforts to get more sales, by discounting, trying to sell to everyone and anyone and poorer product quality are just some of the damaging strategies applied and the result is in front of us. 

Scaling and expansion is great, however when the strategies to achieve the same are on the cost of your product and the customer then doomsday is sooner than later and it is sad to see a store that has withstood centuries going bust.

It angers as how could such a store makes such critical mistakes and how they have managed to chase away their loyal customers, who felt disillusioned, when they were entering stores, wondering why are they here.

Today the retailer is facing a severe cash flow problem and, as an attempt to tackle it, has gone under administration. Downsizing its 165 stores in the UK is another option chosen by the retailer to stay afloat. But many shoppers and analysts believe that cost-cutting will not deliver the turnaround Debenhams has always needed, and I agree with the same.

I think Debenhams' problems have more to do with their image and product range, not appealing. Without a great fashion offering that can attract back loyal customers, who are truly "British at heart" should be the way forward. Masses are not their customers so they should not try to follow them as masses have other options in the market, but in the process of chasing masses they will chase away the classes.

Another part of the problem for Debenhams is its out-of-order prices. Prices were increased to protect profits, with innovating the product and at the same time product quality going down. There customer 

• Firstly never had a problem of paying the price.
• Secondly what they hated the most was lack of innovation.
• Thirdly Felt no there was no reason to go back to Debenhams.

What was available in Debenhams was also available in other stores at a cheaper price.

Fashion is not only about designing but also understanding the sensitivities of the customer.

These are some of the learnings we can take away from the case of Debenhams -

1. Aligning to their customer and connecting with their needs is the first step
2. Innovating the product range in alignment with customer needs is really important.
3. Value addition is really important to make the customer feel the difference.

Debenhams need to re-create a destination that is exciting for customers. The store needs to shift to something more lively, exciting, and value for money.

If you are a brand or a store, I hope you don't make the same mistakes and learn from the mistakes of others. Always remember that your product and the customer are two important pillars of your entire business model, lack of understanding any of them can be fatal to any business, no matter how big it is.

Take care and stay safe.