How Fenwick has shown its staying power amid the decline of department stores

Since the collapse of BHS in 2016, the country has lost at least 80% of its main department stores.

The staggering decline of this British institution has also seen high profile casualties in chains such as House of Fraser, Beales and Debenhams, not to mention regional independents. But others have managed to weather a difficult decade, despite the myriad challenges from Covid, to lacklustre consumer confidence and fierce online competition.

This week historic, North East-born brand Fenwick has been in the news due to efforts to cut costs - with bosses stressing there are no plans to close stores. The family-run chain, which was a latecomer to the digital world in 2019, has been making behind-the-scenes changes linked to the hosting of its website. Despite acknowledging growth will come from online, and taking occasional criticism from retail pundits, the operator of eight stores across the country has also been pouring energy into its bricks and mortar estate - focusing significant investment in its flagship Northumberland Street store in Newcastle. That comes as bosses have identified that till sales will continue to dominate revenue “for the foreseeable future”.

So concurrent with the wider sector’s decade of decline, Fenwick has been remaking its landmark Newcastle store. It started with the relaunch of its multimillion-pound foodhall in late 2015 - just months before BHS’ demise. The two-year project injected new life into the Northumberland Street site, encouraging shoppers to linger while they ate at one of the venue’s modern eateries - set up with significant involvement from prominent Newcastle restaurateur Terry Laybourne. The project also brought in enticing merchandising of premium food and drink brands - many from the North East - which made for ideal gift shopping.

The move was a canny one for Fenwick, which foresaw a crescendo of dining out activity, albeit one that was later curtailed by Covid. It cemented the retailer’s place at the lead of the mid-market retail offer in the city and helped renew Geordies’ fondness for the store, which beforehand had begun to look dated.

Mr Laybourne’s hand in the success has also been the precursor to a run of high-profile partnerships with other North East names in recent years, including the headline-grabbing silver service pop-up bistro run in collaboration with fellow high street stalwart Greggs. The tongue-in-cheek take on fine dining served the food-on-the-go firm’s festive bakes and sausage rolls to punters, with waiting staff revealing the pastry treats, plus accoutrements, from beneath silver cloches. The concept’s first outing in 2023 received such interest that it returned last year - though this time in the shape of a Greggs champagne bar where menu favourites were paired with expensive tipples.

There has also been work with city cocktail bar Mother Mercy, which opened a venue on the store’s ground floor and has since expanded. Meanwhile, Northumberland Micheln star restaurant Hjem last year extended a well-received residency in which it offered a menu inspired by the respective Swedish and local background of its founders, chef Alex Nietosvuori and wife Ally. And this week is the opening of its latest collaboration, with South Shields’ fish and chips favourites Colman’s - who will serve cod and chips in the city centre store as well bringing in local independents Geordie Bangers and Great North Provisions to bring local provenance to its battered sausage and pie options.

There has been more activity besides food too. Last year saw the launch of what it says is the largest beauty hall outside of London - exclusively bringing cosmetics names Hourglass, Charlotte Tilbury and Le Lab to the city. That came alongside the launch of an official Newcastle United retail concession in the store, following Fenwick securing exclusive rights to become the club’s official luxury retail store partner. This week celebratory messages adorn the store’s Blackett Street and Northumberland Street windows following Newcastle’s sensational cup final win at the weekend. And another historic Tyneside neighbour Barbour - with 130 years to its name vs Fenwick’s 143 years - teamed up with the retailer last autumn to launch the ‘Barbour Tea & Toasties’ cafe which is decorated with Barbour-style furnishings and occupies a scenic position overlooking Grey’s Monument. The pop-up is expected to run until the end of this month.