603 jobs are at risk after Thorntons announced that they would be closing their 61 stores.
Following, in the footsteps of Cath Kidston and Debenhams, Thorntons is the latest casualty of the high street shakeout caused by the COVID-19 pandemic.
Both Easter and Christmas trade has been wiped out by the pandemic. Resulting in a huge loss of profits. Consequently forcing Thorntons decision to permanently close all their retail store estate.
Thornton’s retail director, Adam Goddard stated that “the obstacles we have faced and will continue to face on the high street are too severe.”
Yet this is not the end for Thorntons’ shops on our high street, as franchised stores should continue to run. Popular products will continue to be sold on the supermarket shelf.
Concerns have been raised surrounding Thorntons forgetting about franchise stores. A Thorntons’ spokeswoman has announced that “Our franchise partners, alongside our grocery partners and e-commerce, remain a key part of our strategy for the future of Thorntons. The Thorntons website store locator will continue to reflect the franchise stores available to customers.”
The 600 plus staff whose jobs are at risk will be given relocation support if they successfully apply for vacancies at Thorntons’ sites in Alfreton or Greenford in west London, the company said.
Thornton’s is an iconic British brand that was founded in Sheffield in 1911, yet its history is not enough to save it.
Italian food giant Ferrero bought the company in June 2015. Since then it has pumped £45 million into turning the company around. Diversifying stores into cafés has been part of its strategy.
Yet its strategy has been halted by the pandemic which has posed massive restrictions on hospitality venues.
A massive increase in online sales by 70% compared to previous years suggests that the future of Thorntons is online.
Goddard stated that “As customers continue to change the way they shop; we must change with them.”
More than 17,500 chain stores and other venues closed in Britain during the last year. Thorntons is just the latest victim of the decline of bricks and mortar retail.
This suggests further implications for the British high street, that more of our family favourite brands will be forced to retail online.
Olivia Bothamley-Dakin
Featured Image courtesy of Tony Monblat via Flickr, image license can be found here. No changes were made to this image.