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The encyclopedia · Strategy & Leadership · Strategic decision · 2021–2025

Clarks waited so long to modernise that its 200-year legacy almost collapsed

The UK's best-known shoe brand sold control in 2021 after years of decline — by 2024, revenue dropped to £901M, losses hit £39.2M, and 1,200 jobs were cut

Clarks · 2024-05-28

What happened

Clarks was founded in 1825 in Somerset, England, by Cyrus and James Clark. It became the UK's most recognisable shoe brand, famous for the Desert Boot and its near-monopoly on school shoes. For almost 200 years, it was controlled by the Clark family. At its peak, Clarks operated over 1,000 stores worldwide.

The retail landscape shifted dramatically after 2010. Athleisure brands like Nike and Adidas took over casual footwear. Fast fashion offered cheaper alternatives. Online shopping eroded high street foot traffic. Clarks, with its heavy UK store network and conservative brand image, was slow to adapt. By 2019, the brand was in visible decline.

In 2021, the Clark family sold majority control to Hong Kong-based LionRock Capital for £100M. New CEO Jon Ram launched a turnaround, but progress was slow. For the year ending January 2024, revenue fell from £994.5M to £901.3M, and pre-tax losses reached £39.2M. The company cut 1,200 jobs. CEO Ram resigned in May 2024. By 2025, under new leadership, Clarks returned to profitability, but the 200-year family legacy had been permanently altered.

Why it happened

  • The Clark family maintained a conservative brand identity for decades, failing to invest in digital, product innovation, or brand refresh as the market shifted
  • Heavy dependence on UK high street stores became a liability as foot traffic declined and online competitors grew
  • The brand was perceived as 'school shoes' — a narrow identity that could not compete with athleisure or fast fashion for younger shoppers
  • The 2021 sale to LionRock brought capital but also disruption — leadership changes and restructuring costs deepened the losses
What it cost£39.2M loss, 1,200 jobs cut, family control lostcostly

The lesson

A brand that waits until decline is visible to modernise has already lost years it cannot recover — the cost of catching up is always higher than the cost of keeping up

Aftermath

Clarks returned to profitability in 2025 under new leadership. The brand continues to operate with a reduced store network and a renewed focus on digital and product innovation. The Clark family retains a minority stake but no longer controls the company.

Sources

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