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Ever present drama in the retail world as Maplin and Toys R Us fall into administration

28 February 2018

As the country battles with snowy conditions, it looks as though the retail market faces an ever growing battle in the face of Brexit and changing consumer habits.

In the last couple of hours both Toys R Us and Maplin have announced that their businesses have been placed into administration with thousands of jobs at risk.

Toys R Us has struggled in an ever competitive market to respond adequately to an increasingly digital world.

Maplin says it was impacted by the huge fall in sterling which has slumped against rival currencies since the shock Brexit vote in 2016. In an already challenging market where consumer spend is already low, expensive imports were a step too far. Despite talks to secure a sale, it was just too difficult for the retailer to raise the necessary capital.

In response Labour have called on the government to hold urgent talks with trade unions and the companies to try and safeguard as many jobs as possible whilst also trying to recognise and address the issues faced by the retail sector.

Whilst some could see it as an opportunity with these retailers exiting the market - the general feeling is that history won’t be too far from repeating itself and UK retail faces a very tough time ahead.

Retail clients need to be constantly aware of changing trends and revisiting the way they market and advertise their products. Consumers want choice/ease/flexibility/low costs and digital access. Competitors need to be constantly analysed and compared with. It’s all about change and adapting to change.

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