Europe’s mono-brand retailers
Learning from failures and successes
In the past two years, Europe has witnessed a wave of mono-brand retailers filing for insolvency. Yet at the same time, others are expanding successfully across the continent and beyond. This article focuses on understanding the difference between failure and success for brand-driven businesses, less on the aspects of running a successful retail business e.g. location and rent.
The headwinds facing mono-brand retail
Mono-brand retailers face a particularly tough environment. Inflation has dampened consumer spending while store costs remain high. Ultra-low-price online players like Shein and Temu have grabbed share with relentless churn and aggressive marketing. Returns and last-mile delivery costs weigh heavily on margins, while regulatory changes around sustainability (Ecodesign, Extended Producer Responsibility) add new complexity. Finally, shifts in shopping behaviour make it harder for traditional high-street brands that rely on footfall.
The recent insolvencies – and reasons why
The common treads are a consumer mismatch, failing to keep up with the shifts in what consumers want, lack of brand differentiation, assortment inefficiencies, and premium pricing without premium value.
Ted Baker (UK)
Shift to casual, “work from home” reduced demand for tailored, formal apparel and the consumer preference shifted faster than the brand could adapt.
Quirky, British positioning lost appeal and the brand its distinctiveness.
Seasonal trends weren’t matched with agility and pricing didn’t match competitive landscape offering cheaper alternatives.
Licensing deals failed.
2. The Body Shop (UK)
The ethical and natural beauty market has become crowded, with intensified online competition; smaller, niche brands and indie players offer similar values. Added to this, cost-of-living pressures made “luxury-ethical” less of a priority for consumers.
Multiple ownership changes (L’Oréal → Natura → Aurelius) led to shifts in strategy and muddied positioning.
Innovation lagged behind smaller nimble brands.
Pricing was high relative to competing “ethical” or “clean” beauty or naturals at lower price points. Heavy reliance on promotions, especially during the key season, which underperformed.
MUJI (Europe)
Changes in consumer expectations: minimalist design is still appealing, but demands on affordability, convenience, speed of delivery have increased.
A very broad assortment (home, apparel, houseware etc.) created complexity in stock, slower turns in several categories.
MUJI’s premium pricing did not match consumer value perceptions compared to competitors, and did not always align for all markets.
Five success stories – and what they do differently
There is no secret sauce or magic trick that drives success. What drices success are a consumer-first and focus to remain relevant, clear brand positioning that their consumers understand and a choice not to serve evryone, a disciplined and curared assortment, pricing clarity - none are cheapest, but all deliver clear value-for-money in their segment. Promotions are strategic, not constant.
UNIQLO
A clear LifeWear positioning that transcends seasons and generations, serving consumers who are not after “fast-fashion”.
Consistently delivering product quality resulting in strong brand trust for fit and fabric innovation.
Value-based pricing, limited promotions, and a careful expansion of flagship stores.
ZARA
Meets consumers’ desire for constant newness with fast cycles and addresses global trends.
Investment in store experience for premium look, better layouts, and tech integration.
A mid-market pricing, linked to a quality, trend and speed in combination with strategic promotions.
Rituals
Speaks to the growing consumer demand for “self-care,” wellness, and achieves an emotional connection through ritual and lifestyle storytelling.
Creates a distinctive, and holistic brand world behind “The Art of Soulful Living”, with a clear focus on an assortment of beauty and home, bridging personal care and lifestyle.
Premium-accessible pricing, limited promotions, gifting packs that drive perceived value, and strong loyalty programs.
KIKO Milano
Captures consumers seeking affordable beauty with trend responsiveness.
A clear brand identity: Italian, colourful, and trend-led.
Frequent launches, including product and packaging innovations, and limited editions, bringing the positioning to life.
Decathlon
Matches consumer trends toward healthy lifestyles and appeals to both beginners (value) and experts (specialist formats).
The positioning shifted from generalist “everything sports” to multi-specialist expertise.
Each category brand (Quechua, Kiprun, Domyos) carries credibility thanks to consistent product quality. There is a clear trade-up strategy.
The customer experience is completemented with service expansion (bike repair, rental).
To summarise
In a sector where competition is fierce, and consumer expectations are changing fast, staying close to consumers, clarity of brand, agility of execution, and disciplined economics make the difference between flourishing and faltering.
If your business is facing similar challenges, now is the time to identify growth blockers, stress-test your consumer understanding and brand differentiation to unlock sustainable, profitable growth
Let’s connect to explore how your brand can thrive where others stumble.