Many of us will have happily browsed Matches Fashion to find a much-loved luxury fashion find, whether that was a new bag, party shoes or even an outfit for that very same day, thanks to the retailer’s rapid 90-minute London-based delivery slots. Its distinctive green, grey and cream splodged boxes stand out in our wardrobes as the perfect place to house belts, scarves and odd bits and bobs, and we know we aren’t the only ones that held onto this pretty packaging. So the retailer’s announcement on 8 March that it is entering administration is likely to have caught many a fashion fan by surprise.

What went wrong? The retailer was bought by the Frasers Group around three months ago, in December 2023, for £52 million. In a statement sent out by Frasers Group last week, Matches “consistently missed its business plan targets” and despite support from Frasers, it “continued to make material losses”. The statement also added that “while Matches’ management team has tried to try to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable”.

Sadly, this means that 273 people are being made redundant, which is a huge blow to the industry. Although as Benji Dymant, joint administrator from Teneo, shared with The Guardian, Matches Fashion is certainly not alone in its struggle. “Like many luxury fashion retailers, Matches Fashion has experienced a sharp decline in demand over the last year, as a result of well-publicised pressures on discretionary spend, stemming from the high inflation and high-interest macro environment,” he explained.

This squeeze on disposable income thanks to the cost of living crisis in the UK means that fashion is one of the first purchases to be pushed to the wayside, as found by consultant company McKinsey & Co’s State Of Fashion 2024 report. “The most prominent sentiment among fashion industry leaders is uncertainty, reflecting the prospect of subdued economic growth, persistent inflation and weak consumer confidence,” it shared. “Against this backdrop, businesses will be challenged to identify pockets of value and unlock new drivers of performance.” This appears to be where Matches Fashion went wrong.

But there are some positive points. “In an uncertain world, consumer discretionary spend will be weighted toward trusted categories and brands. Hard luxury goods – jewellery, watches, and leather – will likely be in demand, reflecting their potential investment value in tough economic times,” shared Mckinsey & Co. “Consumers are expected to travel more and continue spending more time outdoors. And they prefer emotional connections and authenticity over celebrity endorsements,” it added. Brands really do have to connect emotionally with their customer to have them keep spending.

Images: courtesy of Matches Fashion