BHS 1928-2016 Bust MY REACTION

• Report rights infringement
• published: 25 Apr 2016
• views: 1

Blogger With A Cuppa 208 BHS has gone bust after 88 years but it was 2000 till 2016 when the steep decent began. Department stores started to struggle from the 1990s and large department chains started closing down such as C&A; and Alders etc. Rent agreements signed in the 1970s and 1980s were quite long ones lasting decades… In a time before the internet, credit cards mainly for the well off, and high street parking nobody could imagine how much the next 20 years would change everything. In 2000 Philip Green bought BHS. It was struggling like any other major chain recovering from the 1992 recession. The stores were very of their time but customers liked the brand. He really wanted M&S; but bought BHS to rival it when he failed his M&S; approach. There was still falling profits and stores began to look dated so a few under funded store refreshes were designed to modernise the image, but only some stores got the refresh to the new blue and white initials signage. Now there were newer looking stores and 1980/90 stores. The signage was changed AGAIN just a few years later to the same design but black and white, probably to mark the arrival or Acadia brands now being sold inside BHS to prop up profits. Now there was three BHS fascias. The problem with all the Arcadia brands being brought into BHS is it forced the core customers to shop elsewhere, although on the face of things it looked like the money was coming in, it was undermined when Outfit stores opened up in retail parks. Money started evaporating out of BHS again and Philip Green seems to have lost interest in BHS by 2006 as not Acadia and in particular Top Shop was going through the roof. Another new fascia was designed using block capitals, close to the 1970s design but was only used on new shops. By now the losses of uncared for BHS were becoming so great it was harming Acadia, and with the BHS estate needing store overhauls and new marketing it seems nobody could be bothered, but underneath there was two major problems bigger than the brand of BHS. A pension black hole was only getting bigger and bigger and the ancient terms and conditions of the rents on stores from the 1970/80s were becoming two anchors. Philip Green decided just before selling BHS to start BHS Food Halls. At first the idea of BHS was good and bad issues. Many would think why go to BHS for food? Well, with the right suppliers and advertising, BHS selling good quality food could work. It did for M&S; back in the day so hopefully enough people held BHS in high regard to shop for food at BHS…. The problem was, the food supplied was low quality corner shop emergency food. Cheap packaging and totally out of place. There was now clothes that nobody wanted, excellent homeware & lighting, and now cheap food spread around the BHS estate. With yet another half attempt to refresh the stores ANOTHER fascia for BHS was displayed. With things now completely chaotic BHS was sold for £1 in 2015 which is the loudest indication that BHS’s number is up and about to be asset stripped. Within a year, money was wasted on another signage change and pushing the Food Hall business in a time when food shops were all losing ground to Aldi and Lidl. A cva was announced and a month later on 25/4/16 BHS was put into administration. It is a sad end to the 88 year old business that really still has potential but time and cash have ran out, now 11000 people at BHS will lose their jobs and potentially more from suppliers. Many people will blame other reasons such as parking charges, the internet, everything... but it is actually just bad management, there are plenty of stores opening and doing well Primark, Wilko, Home Bargains, etc they find their market and retain customers.