Popular fashion chain Phase Eight is reportedly considering the closure of several "underperforming" stores as the UK high street continues to face difficulties. The premium womenswear brand, which has been a staple for nearly 50 years, is owned by TFG London, a South African retail group. The company has warned that it is looking to cut costs across the struggling brand, potentially leading to shop closures nationwide.
Scottish Branch Clearance Sale
A clearance sale is already underway at the Phase Eight branch in St Andrews, Scotland, which is set to close. This location will be the latest casualty, and its closure will leave only five standalone Phase Eight stores in Scotland, located in Edinburgh, Glasgow, Aberdeen, and Gretna. All of these could be at risk if the potential closures proceed.
Financial Performance and Strategy
TFG London has stated it will "accelerate right-sizing" of Phase Eight's UK portfolio over the next 12 months. The move was prompted by the brand's performance being "heavily impacted over several years" by the decline of department stores, which accounted for 70% of sales. The group booked a £30 million impairment against the Phase Eight name, reflecting lower long-term cash flow expectations. Before this impairment and the purchase of White Stuff in 2024, the division's EBIT fell from £26 million to £9 million, a decline of 65.4%.
TFG's entire UK legacy portfolio, which also includes Hobbs and Whistles, has been affected by weaker occasion-wear sales, softer department store trading, and disruption from a cyber incident affecting a key online concession partner. Overall group sales rose 29.4% to £488 million in the year to March 31, boosted by the White Stuff acquisition. However, excluding White Stuff, sales were flat at £296 million, while gross profit fell 6.5% and trading expenses rose 5.6%.
Broader Retail Trends
The UK high street has been under pressure for some time, with a shift to online shopping, rising national insurance, and employment costs all contributing to the decline of many retailers. Phase Eight is not alone; other brands like Quiz Clothing have also faced administration and store closures. Additionally, Bank of Scotland is closing 12 branches starting this month, citing a preference for mobile banking.
The Daily Record has approached Phase Eight for comment but has not yet received a response.
