Insight Report 5 minutes PremiumAnalyst Opinion: Lack of Differentiation the Structural Driver Behind a New Wave of UK Retailer Woes Coresight Research January 16, 2018 Executive SummaryIn the UK, recent high-profile retailer difficulties have been reported as representing an “embattled” retail sector. However, we believe the fundamental challenge is actually one of undifferentiated stores facing ever-growing competition. UK retail sales continue to grow above inflation, fueled by greater borrowing and less saving. We expect to see a new round of closures, company voluntary arrangements (CVAs) and bankruptcies among middleground generalist retailers. The UK’s inflationary environment is merely the trigger for this, rather than the underlying cause. Competition and near-unlimited choice is the fundamental challenge for large-store generalist retailers. The abundance of choice spans specialized pure-play retailers, focused specialist stores, brands selling direct to consumers and alternatives to conventional retail such as rental, resale and subscriptions. Last year, our weekly Store Openings & Closures Tracker recorded 921 store closures by major UK chains. We expect this number to rise in 2018, led by structurally challenged generalist stores. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Day Three at NRF 2024: Retail’s Big Show—Lessons from Macy’s, Shein, Temu and MoreAnalyst Corner—Explore Generative AI with John Harmon: Enormous Power and Potential, but Caution AdvisedEarnings Insights 2Q23, Week 4: JD.com, Ross Stores, TJX and Walmart Report Strong Results; Home Depot and Target See Sales DeclineResearch Preview: Market Navigator—Global Luxury