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02:32

'Get Lost in Spring'. That's the tag line in the latest marketing campaign by luxury clothing retailer, Ted Baker. The company has been hugely successful over the last four decades. But this spring, there are signs that it may have lost its way.

Ted Baker shut 11 of its stores in the United Kingdom earlier this week. The firm has more than 300 shops around the world, including eight in China. But it's under strain in the UK, where so-called high street retailers are coming under pressure.

The high street is the primary street for businesses - especially retailers - in a town or city. Analysts have been predicting the decline of the high street trade for years. Those warnings are now hitting home for Ted Baker.

Luxury brand Ted Baker is one of a growing list of UK retailers struggling to survive on the high street. /Neil Hall/Reuters

Stumbling blocks

The company went into administration last month and has cut 120 jobs in its latest round of closures. Meanwhile, it's planning to shut another four stores in the months ahead.

The brand has traded in the UK since 1988. But it's faced a series of challenges over the last five years. Its founder, Ray Kelvin, left in 2019 after he was accused of inappropriate behaviour involving female workers.

Ted Baker also struggled to make money during the Covid pandemic, at one point sending profit warnings to investors. Fashion trends moved away from a tailored aesthetic to 'athleisure wear' as more and more people worked from home. Comfort was the buzzword, and traditional workwear became less important.

"Consumers had a journey of over three years where they were able to find new brands and looks," says consumer analyst, Kate Hardcastle. "The brand had not evolved at the pace the consumer wanted."

Analysts say UK retailers must adjust their strategies as more and more shoppers stay away from physical stores. /Kate Wigglesworth/Reuters

Stepping into dangerous territory

Retailers accounted for nearly 20 percent of all British companies that went into administration last year.

S‌ome big names are feeling the pinch. The Body Shop has done business in the UK for 50 years, but it's had to close 75 of its 190 stores as it searches for a way to stay afloat.

‌Meanwhile, fashion retailer Superdry has been making headlines for the wrong reasons. It was forced to halt trading of its shares in London after prices dropped more than 30 percent earlier this week. The business is now facing a restructuring process.

Shares of clothing retailer Superdry fell more than 80 percent in the first four months of the year. /Andrew Kelly/Reuters

High hopes for the high street

But it's not all gloom and doom. Retailers are looking at new ways to evolve their bricks-and-mortar offering. The truth is, they have little choice.

‌"In maybe two or three years' time, the pain points will have started to ease and we'll see the retailers begin to finesse their offering," says Hardcastle. "It will be about quality, not quantity - there will be less brands. So there will be more casualties, but what we will get at the end is a place to be, rather than a place to shop."

‌The overall outlook for retailers remains mixed right now. Figures from the Office of National Statistics show that retail spending flatlined in March, after growing just 0.1 percent in February.

Ted Baker will be hoping for a change in season when it comes to its financial performance. It could explore several options - for example, a bigger focus on online sales, and perhaps even a deal with a larger company. But right now, spring is feeling very much like winter for this British retailer.