Post-pandemic, a number of fashion chains have started to rethink their all-encompassing flagship outlets, opting instead for concise and more targeted stores, prioritising product focus and property diversity over scale. Others still believe that only size can deliver the wow factor

Jigsaw Kings Road

Jigsaw opted for a flagship away from the West End, preferring King’s Road, Chelsea

  • Big-name retailers are pondering reducing the size of their city flagships
  • There has been a resurgence of concept stores offering unique experiences
  • Agencies are now being asked to design multiple formats
  • Large brand showcases still have a role in defining retail positioning

If there was ever a time to step back and question each and every square metre of retail space, it is now.

The economic headwinds are already at storm-force for many retailers and non-essential categories are likely to bear the brunt of the cost-of-living squeeze.

No surprise then that some of the UK’s best-known fashion chains are looking afresh at their headline stores, including a number of high street names considering reducing the size of their city flagships and offering more curated collections, reducing both business rates and staff costs.

Could such an approach catch on? Womenswear group Jigsaw is one of those to have opted for a flagship away from the West End, preferring King’s Road, Chelsea, for a store that opened a year ago.

“The King’s Road store is probably our largest outlet, but we still see it as a local store for that catchment and reflective of our eco-boutique flagships where we repurpose, re-use and re-cover furniture and equipment from our other stores, and where possible source locally,” says Jigsaw chief executive Beth Butterwick.

“Flagships can be massive loss-makers so it’s a question of sanity over vanity”

Beth Butterwick, Jigsaw

The company has moved away from the idea of the flagship as being the largest outlet in prime city centres. Instead, Butterwick stresses that, for Jigsaw, a flagship must embody the brand and be in the right location for the company’s demographic and where they like to shop.

“Flagships can be massive loss-makers so it’s a question of sanity over vanity,” she says.

“We want the stores to be relevant to the location so we try to give the managers plenty of freedom on inventory and, given that the entire range is available online, curation is really important.”

Fat Face shopfront

Over the past 30 years, Fat Face has grown its estate steadily

Fat Face chief executive Will Crumbie adds that the pandemic brought significant changes, with many businesses – “including ours” – having to find ways to adapt.

As a result, Fat Face has accelerated its digital-first strategy in order to capitalise on the shift to online.

“Since we’ve emerged from lockdown, we’ve continued to upweight our digital offering but our stores are a core part of our strategy,” he says.

“Each of our stores is tailored; after all, a customer in a seaside town is likely to be looking for a different product versus a customer in a city”

Will Crumbie, Fat Face

“We focus on providing a fantastic customer experience in all of our stores and when we do open new sites, we take a very thoughtful approach, looking at a number of factors including footfall, customer awareness of our brand and other retailers in the area.

“Each of our stores is tailored; after all, a customer in a seaside town is likely to be looking for a different product versus a customer in a city.” 

Crumbie says that over the past 30 years Fat Face has grown its estate steadily, “making sure that we have profitable stores in the right locations”.

“They’re a core part of our business and we’ve seen sales rise to above pre-pandemic levels,” he says.

“That said, we do take a thoughtful approach to our portfolio, assessing the estate regularly, so the impact of hybrid working is something that we’ll continue to monitor.”

Big space still in demand

Dominic Bouvet, head of UK retail and leisure at real estate firm Cushman & Wakefield, maintains that flagship instructions continue to favour showcasing, with sportswear an example of a retail category that covets larger spaces to set out its brand position.

“It certainly seems that there is still a place for major flagships if you just look at a number of the recent West End moves, with the impending Regent Street opening of Gymshark and running shoe brand On, what Uniqlo has done at the former Superdry [also on Regent Street] and the Superdry opening on Oxford Street,” says Bouvet.

“So major brands remain committed to those prominent flagships.”

“For a number of categories, like sportswear, that larger scale is important because they want spaces for activities or running clubs”

Emily Salter, GlobalData

Emily Salter, senior apparel analyst at GlobalData, agrees. “There is definitely still an element of retailers who are looking for that big flagship. But even those are being designed with a more localised feel, more personal and relevant to their location.

“For a number of categories, like sportswear, that larger scale is important because they want spaces for activities or running clubs and so on. Or for a retailer like Apple [which recently opened on Brompton Road], they still need that space to host talks and demonstrations.”

Nike West London

Nike recently opened its first Rise format store in Europe at Westfield London

There are plenty such examples. The Adidas flagship opposite Selfridges has pushed the London location hard in its visual merchandising and product selection. Similarly, Nike recently opened its first Rise format store in Europe at Westfield London as part of a four-prong store strategy that includes its flagship House of Innovation format; Nike Rise, its city format; Nike Live, aimed at neighbourhood locations; and Nike Unite, targeted at the community.

Salter notes that retailers are also developing strategies that recognise the impact of online. 

“With ecommerce, apps and knowledgeable staff, the need to showcase your full range is not quite the same as a few years ago,” she says.

“This provides the retailer with the opportunity to provide a more curated experience, tailored through data.”

Bouvet adds that retailers are often focused on alternative flagships when they are multi-brand and want to focus on one of those sub-brands or where a quirkier or alternative environment fits the specific proposition.

Wolverhampton Frasers

Source: JSP

Frasers has opened statement stores in Wolverhampton, Birmingham and Glasgow

Localised showcases and brand mixes

It is also worth remembering that large brand showcases retain an important role in defining retail positioning.

One key expansionist, Frasers Group, has remodelled and reframed its business by taking large-format space to co-locate its increasing roster of brands.

Over recent years, the group has opened a number of high-profile large stores and invested heavily at its landmark Sports Direct store on Oxford Street, while further statement stores have opened in Wolverhampton, Birmingham New Street and Glasgow Argyle Street, with an upcoming multi-brand opening at Manchester Arndale.

The company also acquired the former Debenhams store in Leeds and the old Topshop in Cardiff, which will both be redeveloped as upscale Flannels stores, following the opening of a 120,000 sq ft store in Liverpool and confirmation of Gateshead Metrocentre as another future site.

Sports Direct Birmingham New Street

James France, group head of real estate at Frasers Group, says Sports Direct “is a great footfall driver”

“These stores give us the chance to bring all the brands together and we have become experienced at how the mix and adjacencies work best,” says James France, group head of real estate at Frasers Group.

“It’s the department store ethos but with only strong-performing brands. There are no space fillers like homewares and kitchen appliances, as in old-style department stores.”

The approach is part of the company’s ‘Elevate’ programme and France concedes: “It’s no secret that we had under-invested in our real estate and such projects take a long time so the key flagships are important, not least working with brands to discuss what they want from our stores.”

Major city centres have been ideal for Frasers flagships, but the next challenge is how to tackle cities such as Blackpool and Norwich, he says.

“We continue to be big believers in physical retail and our new stores are around double the size of a few years ago”

James France, Frasers Group

“That won’t be with quite such large formats and the decision for us is what elements we work with,” he says.

“They will be condensed but we have the advantage that Sports Direct is a great footfall driver. We continue to be big believers in physical retail and our new stores are around double the size of a few years ago.” 

Retailers change the brief

Mike Tristram, senior strategist at designer Checkland Kindleysides, which has worked on several global flagships, says many retailers have recently rethought their briefs.

He says the agency tends to be asked not to design one format in isolation but multiple, focused and targeted formats.

“They have very different KPIs, product offers and service,” he says. “It’s thinking about the ecosystem, online and ensuring that everything is working in unison.

“When there’s a convenience format 500 metres down the road from a flagship, why would you go for one over the other when they have the same product offer and you can click and collect at both?”

Theory store entrance from UNIQLO store

Uniqlo proves there is still a place for major flagships

Tristram says size is no longer the aspiration. “It’s the biggest shift that we’ve seen. Before, we were often asked for one retail concept with a design language that could be filtered through the estate. Now it’s more: this is a flagship, this is an urban concept store.” 

That more forensic approach chimes with the re-evaluation of the estate at Jigsaw. Butterwick says the company is back in growth mode with plans – backed by recent qualitative research around postcodes – that will see the company expand from around 42 stores to circa 50-55 in an enlarged estate.

“You can’t have multiple messages vying for attention”

Mike Tristram, Checkland Kindleysides

“For us, market towns and affluent locales such as Guildford, Chiswick, Dulwich, Blackheath and Richmond are all key places, though our Ilkley store is possibly the smallest at 800 sq ft and yet one of our strongest performers by sales density, which shows how important understanding locality is,” she stresses.

So what will the next generation of flagships look like? Exclusivity in terms of experience and offer, authenticity in terms of location and a deeper rethink about purpose are all on the agenda, according to Tristram.

He notes a resurgence of concept stores with a unique experience to build a relationship with the consumer, rather than “massive stockrooms”. He adds that it is important not to try to be everything to everyone.

“If you’re going to create a wow in a smaller space you have to be very singular. You can’t have multiple messages vying for attention,” he says.

“You have to create focus, but then amplify a singular message. Be brave with what you leave out.”

  • Get the latest stores news and analysis straight to your inbox – sign up for our weekly newsletter