Around 800 retail jobs in Northern Ireland are expected to go as online retailers moved closer to snapping up brand assets of department store chain Debenhams and Topshop.
he renewed prospect of job losses come as the first labour market survey of 2021 today is expected to show an unemployment rate of over 4% for the end of 2020.
Boohoo's swoop on Debenhams and Asos's anticipated deal for Topshop and other Arcadia brands reflect how the Covid-19 pandemic has accelerated the move to online shopping.
It will bring the loss of about 500 jobs at Debenhams here, and 280 jobs at dozens of Arcadia stores and concessions, like Topshop, Miss Selfridge and Topman. There are also Arcadia concessions in Menarys stores around NI.
Four Debenhams stores here - key anchors for shopping centres Ballymena, Newry, Belfast and Craigavon - are tipped to close by the end of March. In a separate move, Asos told investors that it is in exclusive talks to buy the Topshop, Topman, Miss Selfridge and HIIT brands and online businesses from administrators for Sir Philip Green's Arcadia empire.
A Debenhams in Londonderry's Foyleside Shopping Centre has already been sold to Frasers Group, led by sportswear tycoon Mike Ashley.
Neil McShane, a commercial property investment advisor and founder of consultancy InPrio, said the deals would "decimate" the high street. "The Boohoo deal is more bad news for the high street as it will see Debenhams vacate 118 large units in high streets and shopping centres across the UK.... these large units will not be easily filled given the current market challenges but also the small number of retailers who trade from these larger units. Some may lend themselves to a split for smaller requirements but many will not.
"If the Asos deal for the Arcadia brands goes ahead, it will further decimate the high street as it appears the plan is to take the brands and not the shops. Again, a huge number of jobs are at risk.
"However, these voids, in typically prominent positions, are in the most popular size bracket and will therefore present opportunities for other existing and new businesses who want to capitalise on the in-person shopping experience that people will crave when we get back to normality.
"We could also see other uses come to the high street, including co-working space, community and healthcare uses. Proactive landlords will already be exploring new uses and end users."
Retail NI chief executive Glyn Roberts said the closure of four Debenhams would be "a hammer blow to our already struggling high streets".
"We are also concerned that if the Asos talks to buy Topshop, Topman, etc to buy the brand and not the stores are successful then sadly we will see further store closures and job losses."
He added: "The Executive needs to immediately establish the High Streets Taskforce to get down to work, producing a big bold radical new plan for our post-pandemic high streets and town centres."
While Asos' deal would mean Arcadia's own physical stores would close, it's understood concession arrangements could survive where a wholesale arrangement exists.
Arcadia administrators Deloitte have said they want to complete a deal disposing of Arcadia's assets by the end of January.
Boohoo has bought high street brands Karen Millen, Oasis and Warehouse in the past two years to take them online-only and shut stores.
Guy Elliott at Publicis Sapient said the online firm's deal for Debenhams is similar, in that it will open up Boohoo to a different demographic to its core teenage and millennial customer base.
Around 800 retail jobs in Northern Ireland are expected to go as online retailers moved closer to snapping up brand assets of department store chain Debenhams and Topshop.
The renewed prospect of job losses come as the first labour market survey of 2021 today is expected to show an unemployment rate of over 4% for the end of 2020.
Boohoo's swoop on Debenhams and Asos's anticipated deal for Topshop and other Arcadia brands reflect how the Covid-19 pandemic has accelerated the move to online shopping.
It will bring the loss of about 500 jobs at Debenhams here, and 280 jobs at dozens of Arcadia stores and concessions, like Topshop, Miss Selfridge and Topman. There are also Arcadia concessions in Menarys stores around NI.
Four Debenhams stores here - key anchors for shopping centres Ballymena, Newry, Belfast and Craigavon - are tipped to close by the end of March. In a separate move, Asos told investors that it is in exclusive talks to buy the Topshop, Topman, Miss Selfridge and HIIT brands and online businesses from administrators for Sir Philip Green's Arcadia empire.
