Is an Iconic Department Store Making a Comeback in the UK After 25 Years? Find Out the Catch!

Rackhams, the luxury department store that has been absent from the UK high street for over 25 years, is making a comeback as an online-only retailer. Originally founded in 1881, the brand has returned with a marketplace model that focuses on designer brands, boutique labels, and fashion essentials.

Last updated: 27 October 2023 (BST)

Key Takeaways

• Rackhams reopens as an online-only marketplace after 25 years.
• The brand offers over 170,000 products from various designer and boutique labels.
• Free delivery is available on all orders placed through the website.
• Strong growth reported since the soft launch, with over 600 partners onboard.
• CEO Mark Jordan aims to leverage previous retail experience to enhance customer support.

A Rich History Returning to the Digital Age

Rackhams first opened in 1881, evolving into a staple of British retail for over a century. It became part of the Harrods group in 1955, later acquired by House of Fraser in 1959. Despite its rich history and esteemed reputation, Rackhams closed its physical stores in 2000, marking the end of an era for the brand. However, the recent decision to revive Rackhams as an online marketplace brings a new chapter to this storied name.

The Marketplace Model Explained

Unlike traditional retail formats, Rackhams' online presence operates as a marketplace. This means that while Rackhams will curate a selection of products from various sellers, it does not hold inventory in the same way conventional department stores do. Instead, it acts as a platform connecting customers with a myriad of brands, thereby expanding its offerings while establishing a diverse shopping experience.

The Benefits of an Online-Only Model

Transitioning to an online-only format offers numerous advantages:

• Wider Reach: Online platforms can attract customers from across the country, and even internationally, without the limitations of physical store locations.
• Cost Efficiency: Operating without physical stores reduces overhead costs, allowing for more investment in marketing and customer service.
• Flexibility: An online model allows for rapid adjustments in inventory and offerings based on market trends and customer feedback.

What Products Can Shoppers Expect?

With over 170,000 products available, Rackhams caters to a wide array of shopping needs. The selection includes:

• Designer clothing from renowned luxury brands.
• Boutique labels that offer unique and stylish options.
• Fashion essentials such as shoes, accessories, and beauty products.

This extensive range is designed to meet the diverse tastes of modern consumers while maintaining the brand's high standards of quality and service.

Customer Experience at the Forefront

CEO Mark Jordan emphasises that Rackhams is built around customer experience. His previous success in growing an online retail business to over £100 million in annual turnover is a testament to his expertise in this field. The focus is on delivering exceptional service at every stage of the shopping experience, from pre-sale inquiries to post-sale support.

Partnering for Success

Since its soft launch, Rackhams has welcomed over 600 partners, showcasing its commitment to creating a thriving marketplace. This collaborative approach allows smaller brands to benefit from Rackhams’ established reputation while providing consumers with a diverse selection of products. The rapid onboarding of partners indicates a strong interest in the marketplace model as a viable retail alternative.

Market Trends and Comparisons

Rackhams' reopening is not an isolated event; it's part of a broader trend in retail where brands are shifting towards online marketplaces. For instance, B&Q trialled a marketplace click-and-collect service and BoohooMan launched an online marketplace featuring over 500 brands. These examples show a growing acceptance of the marketplace model in the UK, especially as traditional high street stores face increasing challenges.

Impact of High Street Closures

Interestingly, Rackhams' digital comeback coincides with a wave of high street closures, with notable retailers like GAME and Hobbycraft shuttering multiple locations. This scenario highlights a pivotal shift in consumer behaviour, with more shoppers opting for the convenience and variety that online marketplaces offer.

Looking Ahead

As Rackhams continues to establish its online presence, the focus will be on sustaining growth and expanding its market share. The commitment to free delivery on every order is likely to attract more customers, while the ongoing development of customer support systems will be crucial in building brand loyalty.

The Future of Department Stores

The return of Rackhams reflects not just a revival of a beloved brand but also a significant evolution in how department stores operate. By embracing the marketplace model, Rackhams is positioning itself to thrive in a competitive landscape that increasingly favours online shopping.

Conclusion

Rackhams' return to the UK market as an online-only department store represents a significant shift in the retail landscape. By adopting a marketplace model, they aim to provide a unique shopping experience that combines luxury with accessibility. As they continue to grow and adapt, it raises the question: could this be the future of department stores in a digital age? The evolution of shopping habits suggests that Rackhams may be onto something special.

#Rackhams #OnlineShopping #RetailTrends

FAQs

What is Rackhams?

Rackhams is a luxury department store that originally opened in 1881 and has recently returned as an online-only marketplace offering a mix of designer and boutique products.

Why did Rackhams leave the high street?

Rackhams exited the high street in 2000 when its physical stores were retired, and the brand was absorbed into House of Fraser's operations.

What kind of products does Rackhams sell online?

Rackhams offers over 170,000 products, including designer clothing, boutique labels, and essential fashion items, all available through their online platform.

Is there free delivery on Rackhams orders?

Yes, Rackhams offers free delivery on every order placed through their online store, making it easier for customers to shop without added shipping costs.

Who operates Rackhams now?

Rackhams is operated by Rackhams Retail Ltd, which has adopted a marketplace model to connect customers with various brands and products.