Clarks launches store review

High street shoe retailer Clarks has instructed Harper Dennis Hobbs to review and modernise its portfolio. The agent will work with the brand to ensure that its 500 shops are the right size, in the right locations and paying the correct market rent for its locations. It is not expected that the review will result in multiple store closures. However, some shops that are no longer fit for purpose, in the wrong location, or are approaching the end of their lease may close. Clarks recently hired Jason Beckley as its chief brand officer, who has previously worked with Yves Saint Laurent and Nike. As part of the review, Harper Dennis Hobbs will be contacting all Clarks landlords to share with them the direction the company is taking, how the Clarks brand has been transformed, and to build closer partnerships in the future to ensure commercial terms are mutually beneficial. David Harper, chief executive of Harper Dennis Hobbs, said: “The Clarks brand is one of the most established and respected with nearly 200 years of history. We are pleased to be working with Mike Shearwood and the Clarks team to ensure that the brand’s property portfolio retains its relevance today and in the future.” Mike Shearwood, Clarks’ chief executive, said: “I am pleased to be working with Harper Dennis Hobbs to ensure that we have the best possible property portfolio that meets our status as a desired retailer that delivers profit in locations where others can’t.” The retailer, whose closest competitors are Next and Debenhams, has experienced progressive falling market share for the past five years. It currently has a market share of 8.1%, which has fallen from 8.6% in 2012, according to research from GlobalData. Clarks posted a 65% fall in profits in the year to January 2016. Former chief executive and finance boss Robin Beacham both left the business in 2015 following a fall in sales. Sarah Johns, retail analyst at GlobalData, said: “Clarks need to target a younger generation of shoppers and they need to focus more on e-commerce. Their marketing and merchandising has not been very effective and this portfolio restructuring is something that they should have done sooner. They need to close their least profitable stores and focus more online. “The likes of Office and Schuh are their closest competitors, and with more clothing specialists moving into footwear, despite being a market leader their market share has been declining over the past few years so this turnaround strategy will be vital to their success.” Clarks’ average high street shop size is around 1,000 sq ft, with a larger format in retail parks and shopping centres of around 3,000 sq ft. Clarks has around 500 shops, exposing it to more space than some of its high street rivals like Office and Schuh. Johns added: “They need to make sure that they have the right amount of floor space in the right areas as well as which ones are profitable. With the growth of online they probably don’t need as many shops.” The footwear retailer is also planning to open two turnaround concept shops in Manchester and Glasgow as a pilot of its modernised branches. It already has a showroom of its new modular fit-out in Russell Square, WC1. • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette