dipp | A centralized hub for your CreativeOps

What happened to Topshop, Debenhams, and Crabtree & Evelyn

Written by Celia Ting | Dec 23, 2024 2:00:00 AM

Topshop, Debenhams, and Crabtree & Evelyn might seem to have little in common, but all three have undergone buyouts and transformed into fully online brands. But is this digital shift actually working?

In the wake of shifting consumer preferences and increasing operational costs, some established retail brands have embraced fully digital models, while others remain cautious. Moving to an online-only structure can offer significant logistical and cost-saving advantages, yet it poses complex challenges, particularly for legacy brands with deeply rooted physical identities. This digest examines three well-known brands—Topshop, Debenhams, and Crabtree & Evelyn—and how they’ve navigated digital transformations, the hurdles they’ve faced, and the broader implications for retail.

Brand Analysis

1. Topshop

Topshop, launched in the 1960s as a fashion-forward label for younger shoppers, quickly became a go-to British brand. Known for trendy collections and high-profile collaborations, it became an anchor of the Arcadia Group and a staple on high streets across the UK. But as consumer shopping patterns changed, Topshop struggled to keep pace, especially with Arcadia’s administration in 2020. In 2021, Asos acquired Topshop, converting it to an online-only model to leverage e-commerce efficiencies and cut down on overheads. However, the move has raised questions about brand engagement and accessibility without physical locations. This shift has prompted Asos to consider a return to brick-and-mortar stores to provide a hybrid approach that could help Topshop better connect with customers who crave an in-person shopping experience​.

2. Debenhams

Debenhams has a long-standing reputation, founded in 1778 and known for offering a vast range of products from fashion to home goods, making it a prominent British department store. Like Topshop, however, Debenhams faced difficulties adapting to the digital era and entered liquidation in 2020. Boohoo Group acquired its brand assets in 2021, transitioning it to a digital-only model. Despite the advantages of a streamlined, digital-first approach, Debenhams has struggled to recreate its traditional shopping experience online, particularly the “department store” feel that many loyal customers valued. Boohoo’s efforts to bring Debenhams fully into the e-commerce space reveal both the logistical and experiential challenges of maintaining a department store’s identity without physical locations​.

3. Crabtree & Evelyn

Founded in 1972, Crabtree & Evelyn made a name for itself with luxury personal care products inspired by natural ingredients and a classic British aesthetic. Despite its strong brand identity, the company closed its stores globally in 2019 due to financial difficulties. The brand then pivoted to an online-only model, aiming to capture younger, digital-native consumers. However, Crabtree & Evelyn faced challenges in replicating the sensory experience—texture, scent, and the in-store ambience—that defines beauty and personal care shopping. Recently, it opened a concept store in London to bridge the online and offline gap, showing how even digitally-focused brands can benefit from a physical presence to engage and captivate customers​.

Key Takeaways for Retail Brands Considering a Fully Digital Model

  1. E-commerce Isn’t a One-Size-Fits-All Solution
    Moving to a fully digital model is more complex than shifting inventory online. Heritage brands, particularly those with deep customer loyalty, may find it difficult to sustain engagement purely through e-commerce, as customers often miss the traditional shopping experience.

  2. Physical Presence Can Enhance Online Success
    Brands like Crabtree & Evelyn demonstrate that hybrid models can create a well-rounded brand experience. Physical stores or pop-up shops can provide customers with tactile engagement and a stronger brand connection that is difficult to replicate online.

  3. Reimagined Customer Engagement is Essential
    For fully digital brands, fostering loyalty requires investing heavily in customer engagement strategies such as personalized recommendations, interactive online content, and strong social media presence. Engaging customers digitally becomes crucial in the absence of in-store interactions.

  4. Logistics and Customer Experience are Paramount
    Managing customer expectations around delivery and returns becomes critical when all sales are online. For a successful transition, brands need to establish fast and reliable logistics operations that compete with digital-native brands, offering seamless service that meets or exceeds in-store convenience.

  5. Brand Legacy Needs Recontextualization
    Heritage brands must find creative ways to translate their history and quality into a digital experience. Digital storytelling, rich product descriptions, and online events can help convey brand values and authenticity, bridging the gap between traditional and modern retail.

 

This transition to a fully digital model may not be a universal fit, but these brands’ efforts illustrate how adapting to today’s retail landscape involves both innovation and reimagining traditional strengths. As retail continues to evolve, finding the right balance between digital and physical presence may ultimately determine the sustainability of a brand’s identity and customer loyalty.

 

Reference:

Is Crabtree & Evelyn ahead of the curve by closing all stores and going digital?

Why has Asos sold Topshop – and what happens next?

Topshop could return to high street after Asos sells stake for £135m

What is going on with Topshop?