The Observer view on the collapse of Maplin and Toys R Us | Editorial
The past decade has witnessed the collapse of several celebrated British high street brands, from Woolworths to BHS. Last week, two more familiar names - Toys R Us and Maplin - headed for the retail graveyard, just the latest indicator of the far-from-rosy outlook that faces the sector. A number of other famous names, from Debenhams, to Mothercare, to House of Fraser, appear to be teetering on the brink.
The trends driving this are familiar. Shopping habits have changed profoundly; while consumers are spending less in shops, internet sales have been steadily growing, with one pound in five now being spent with online retailers. The fragile economy means less consumer cash to be spread around: real wages have been falling as the weak pound has driven up inflation post-Brexit. Many high street brands overexpanded during more auspicious economic times, leaving them burdened with debt and underperforming outlets.
The Observer is the world's oldest Sunday newspaper, founded in 1791. It is published by Guardian News & Media and is editorially independent.