This week, it was revealed that House of Fraser is to close stores as part of a restructuring of its business.
The company has enacted its turnaround plan in response to its sluggish performance over the past couple of years. It intends to launch a company voluntary agreement (CVA). It is not yet clear how many stores are earmarked for closure.
House of Fraser’s struggles are similar to several high-street retailers. YouGov BrandIndex data indicates that the brand remains well thought of in terms of Quality and on this metric it is fourth in our high-street fashion rankings, narrowly behind Debenhams and Next. However, it is a long way behind Marks and Spencer in first.
Yet the brand lags when it comes to its Value score, being 22nd on our list (out of 55) with a score of +1. It is a long way behind Debenhams (+12) for example. Among those aged 18-34 the situation is worse, with House of Fraser in 39th place among this group with a score of -3.9. This is a long way short of the score currently held by Asos (+20).
Notably, both metrics have remained relatively stable for a long period of time, and there has been no great change in the brand’s Impression score over the last two years. This suggests that while the brand is generally well-liked, it is being weighed down by other costs associated with the business. Added to this its struggle to appeal to younger consumers when it comes to value suggests the brand is being outflanked by online rivals.