Into the Black

Blacks, the outdoor store, has placed its O'Neill stores in administration and confirmed it will default on its debts. I would be sad to see Blacks go bankrupt. I've spent a lot of time there, planning treks and adventures. And I don't think there's an obvious alternative to them on the high street.

What can we learn from their predicament? Their website describes their portfolio thus:

The Outdoor Group comprises Millets and Blacks, the largest outdoor retailers in the UK, and Freespirit and Mambo, the leading retail chains in the newly emerging UK boardwear market

With the benefit of hindsight, this 'newly emerging' market (acquired with the Millets stores in 1999) was a bad punt for Blacks, for two reasons:

Blacks was vulnerable to economic downturn (they struggled very badly in the 1980s). Boardwear, more fashion/fad conscious and with a younger target market, exaggerated that risk. Blacks needed an anti-cyclical arm. It should have been well placed to develop one, but instead it has let brands such as Argos and Go Outdoor open up share in the 'value' end of the camping market.

Secondly, despite appearing to be a logical stretch, boardwear was maybe a step too far from the core - different product and different consumer simultaneously. Was there ever sufficient (real) capability leverage to give Blacks a robust advantage there?

Either vanity, or the promise of a fast buck, led them in the wrong direction. How many of us can claim we wouldn't do the same? For the sake of all our vanities, I hope Blacks survives.