Today’s news in brief-18/3/25
Forever 21 has filed for bankruptcy protection in the US for the second time, following a previous filing in 2019. The retailer, once a dominant force in fast fashion, has struggled to compete with foreign competitors and rising costs. While its US stores and website will continue trading during the liquidation process, its international operations, managed by independent licensees, remain unaffected. The company plans to hold liquidation sales and sell assets under court supervision. At its peak in 2016, Forever 21 operated 800 stores globally, including 500 in the US.
Ikea is set to open a new store on London’s Oxford Street on 1 May, following a three-year renovation of a Grade II listed building. The store, spanning 5,800 square metres across three floors, will offer the traditional Ikea experience, including showrooms, a market hall, and a Swedish Deli. The renovation focused on enhancing environmental performance while preserving the building’s heritage, with upgrades such as energy-efficient heat pumps and improved insulation.
The UK retail sector faces a severe skills crisis, with inefficiencies costing businesses £23.3bn annually, according to research by Flip and Workplace Intelligence. The study highlights a growing generational divide, with 75% of retail managers noting that older employees hold critical technical expertise. However, 59% of workers over 55 plan to retire within five years, risking a knowledge drain. The research also found that new hires take up to six months to become fully productive, with 90% of managers citing under-25s’ lack of essential skills.
Tesco has announced a £180m investment in staff pay, increasing hourly rates from £12.02 to £12.45 by March 2025 and to £12.64 by August. This represents a 32% pay rise since April 2022, alongside an increase in the London allowance and maximum sick pay entitlement. However, the supermarket will remove Sunday premium payments, offering a one-off payment instead.
Select Fashion is nearing collapse, with 35 stores set to close and staff unlikely to receive redundancy payouts. The brand, which entered administration in 2019, has reportedly drafted in advisers from Moorfields to oversee liquidation. Select’s struggles follow a failed turnaround plan amid challenging high street conditions, with losses of £15.5m on £117m sales in 2018-19. The collapse adds to a growing list of fast-fashion retailers facing financial difficulties, including Quiz, which closed 23 stores earlier this year.
Go Outdoors is expanding its use of body cameras to 25 additional stores following a successful trial in Stoke. The initiative aims to deter theft and improve staff safety amid rising retail crime, which cost the sector £2.2bn in 2023/24. Store manager Claire Cowie described the cameras as a “game-changer,” boosting staff confidence and customer trust. Associate director Carl Harris emphasized the company’s commitment to creating a safer shopping environment, with further rollouts planned nationwide. The move follows Go Outdoors’ partnership with The Retail Trust, a charity supporting retail workers.