Global Retail Industry in Turmoil, Many Well - known Enterprises Bankrupt

In the past year, the global retail industry has experienced severe shocks. A series of retail giants once hailed as world - class have successively collapsed. This is not only a huge blow to these enterprises themselves but also a severe test for the entire industry. In an economic environment of high inflation, traditional retail, especially those mainly targeting the middle class and relying on off - mall operations, has suffered an unprecedented impact. This includes well - known brands such as The Body Shop, Superdry, Wilko, Joann Stores, and Bad Boy.

The UKCosmetics & Personal CareThe collapse of The Body Shop has become a symbol of this retail crisis. The company announced bankruptcy filing in 2024年3月, with all its U.S. stores closed and 33 of 105 Canadian stores beginning liquidation sales. The Body Shops annual sales decreased by 13.5% year-on-year, vividly reflecting weakened consumer purchasing power in a high-inflation environment. This UK-based cosmetics company has been severely impacted by high inflation in recent years, with continuous sales declines.

The decline of the British trendy brand Superdry is also remarkable. As a trendy brand founded in 2003 with more than 200 stores in over 40 countries around the world, Superdry not only had many celebrity fans such as David Beckham and Jude Law but also was listed on the London Stock Exchange with a market value once reaching 2 billion pounds. However, in recent years, due to consecutive losses, even the 25 - million - pound capital injection last year failed to reverse the downward trend, and it finally came to the brink of bankruptcy.

The bankruptcy of the British old - fashioned chain retailer Wilko has even more deeply worried the industry about the future of the British retail industry. Since its establishment in 1930, Wilko has been a well - known retail brand in the UK. However, under the double blow of high - inflation pressure and tight funds, in August last year, Wilko failed to find a rescue plan and became another major casualty in the British retail industry after the Arcadia Group and Debenhams.

The US arts and crafts retail giant Joann Stores filed for bankruptcy protection on March 18 due to a reduction in consumer non - essential purchases. This company, which has been operating for nearly 50 years and is well - known in the sewing and handicraft field, has debts of up to 1 billion US dollars, but its more than 850 stores and website will continue to operate.

The Canadian furniture brand Bad Boy also officially announced bankruptcy and restructuring at the end of last year. Multiple factors such as high interest rates, a sluggish housing market, and a tight retail environment forced this chain founded in 1955 and once widespread in Ontario to make a difficult decision.

The famous German luxury goods group KaDeWe Group had to file for bankruptcy at the beginning of this year due to excessive rent. Its luxury department store KaDeWe in Berlin is the largest department store in Europe and has witnessed a century - long history.

The latest report from S&P Global shows that in 2023, a total of 642 companies filed for bankruptcy, reaching a 13 - year high, and the number of bankruptcy filings has exceeded that of the worst - hit period of the pandemic. This data warns enterprises that even well - known large companies in Europe and the US in the industry face significant operational risks.foreign tradeAnalysts point out that the traditional retail industry has been hit most directly and brutally. On the one hand, the reduction in residents real income has led to a significant decline in non - essential consumption, putting many retail brands targeting the middle class in a difficult situation. On the other hand, the online shopping habits formed during the pandemic have made things worse for traditional physical stores.

In addition, most of the brands on the verge of bankruptcy are old - fashioned enterprises. High labor and rent costs, and slow channel upgrading are also factors that have led to their loss of competitiveness.

Facing the volatile environment, foreign trade enterprises need to be vigilant at all times. Even if they have long - term cooperation with well - known large customers in Europe and the US, they should prudently assess their solvency and do a good job in risk control to prevent unexpected risks.

British Chain Retailer Wilko