Times change and brands need to adapt

Early 2018 has seen the passing of a clutch of household names some young, some old.

Billy Graham just not quite making his century, as famous for his religious catalysing at the end as in the mid-50s. Sir Roger Bannister, at 88, first an astonishing athlete before switching to become as renowned neurologist .  Then Davide Astori cut off in his majestic footballing prime at 31.

Business hasn’t faired much better – Toys R Us, after 70 years on the high street, filing for Chapter 11 in the US and administration in the UK. Maplin failing having recently celebrated 45 years trading.  Just 17 years in, Prezzo is hoping to outlive other restaurant chains by shrinking to 1/3 of its peak scale after a history of massive growth.

The causes of demise are all individual but in many ways sadly similar. 

Toys R Us was the cornerstone of many an out-of-town retail park but, ironically, that was core to its downfall.  Kids attitudes to toy buying have changed and they want instant gratification – downloading an app or ordering up that specific fidget spinner for same day collection from Argos.  Stimulated by Harry Potter they began to expect magic and the warehouse style of presentation just didn’t cut it – worse, it ended up parodied as by the Toy Story franchise. Kids know what they want and they want it to feel specifically created for them. So, a vista of aisle after aisle of identical stuff simply doesn’t work.  Tiring stores and the sheer cost of such a huge physical footprint made them uneconomic, especially alongside online rivals.

The irony for Maplin is that it started as mail order technogeek heaven (long before the internet) which was then lured onto the high street searching for mainstream consumers. But that was the trouble – it became just another gadget shop rather than THE go to place for those truly serious about tech.   Speak to British nerds of a certain age, and they’ll wax lyrical about ultra-knowledgeable sales staff guiding you to piles of obscure components. Losing focus, striving for that general audience, meant stores sported drones, tablet computers and home automation gear.  Eventually, the burden of loans used to fund expansion brought them down.  Who knows, maybe the brand can re-emerge, phoenix-like, as the mecca it originally was?

Prezzo’s is a story of ultra-fast growth driven by dramatic (or eye-watering) promos to get people through the doors. Stepping back, without those margin squeezing offers were they offering anything distinctive amongst a host of competing restaurants?  As other now-struggling casual chains like Byrons and Jamie Oliver’s Italian have found, dining habits change and continuing with “same as ever” in a crowded sector with a less frequently visiting clientele inevitably spells pain.

The lessons here are clear: don't push expansion beyond natural limits and nourish the DNA of your success - the trick is to match Billy Graham and Roger Bannister by keeping the expression of your DNA evolving to renew the essence of that success.

This article first appeared in Huddersfield Examiner on 8th March 2018