Under pressure House of Fraser must up online game, GlobalData

House of Fraser’s drastic store closure plan is essential, but there is no guarantee of success, according to GlobalData.The embattled retailer must significantly improve its product offer and store environment to attract customers back whilst also enhancing its online proposition.

Its main problem is that it does not have a clear point of difference in a crowded market and in a climate where consumers are cutting back on discretionary items, argues Sofie Willmott, Senior Retail Analyst at GlobalData.‘'Midmarket department stores are struggling and have come under threat from all angles in recent years,” she says.

Pureplays including Asos and Amazon, offering a vast product range and convenient fulfilment options, have grown at a rapid rate stealing share from stagnant department stores. While clothing specialists have upped their game branching out into homewares and beauty and threatening the traditional department store players, Willmott notes. "Luxury department store retailers offering a unique shopping experience such as Selfridges and Harrods are outperforming thanks to their aspirational product ranges and innovative and unique stores.”

The online channel will be expected to pick up sales that will be missed from store closures, so House of Fraser must ensure its website proposition stacks up against the high standards set by pureplays in order to succeed. “Re-platforming its website in April 2017 had a negative impact on online performance and has been a real set back causing the retailer to fall behind other multi-channel clothing specialists,” says Willmott. “House of Fraser plans to implement personalisation and a loyalty scheme in 2019 but as its competitors already have assets like these in place, it really must act quickly to implement tools to drive digital sales.”

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