Rackhams – the luxury department store that once delighted Birmingham with its lavish Christmas shop front displays – is making a return to British retail under new ownership, this time as a digital-only marketplace.
With a long history as a trusted British brand, Rackhams was originally founded as a retail drapery business in 1881 in Birmingham by John Rackham and William Matthews. In the 1950s, it was bought by Harrods and then House of Fraser, and during the 1970s, the Rackhams name was used for stores across the Midlands and Northern England under House of Fraser’s regional branding strategy. Although this was phased out by the 2000s, the name Rackhams still has a nostalgic appeal, particularly in Birmingham.
CEO and owner Mark Jordan will no doubt be looking to capitalise on some of that nostalgia to grow the business, which is now entering full rollout following its soft launch last November. Sales director Will Spencer says the response so far has “delighted” them. “We’ve already welcomed over 600 partners and shipped tens of thousands of orders in less than a year, and we fully expect this growth to accelerate as we increase our presence within the market,” he said.
Competitive market
Nonetheless, Rackhams enters a crowded and highly competitive marketplace. Debenhams similarly relaunched as an online-only marketplace in 2021; owned by the Boohoo Group, it leans into their audience of Gen Z and millennial consumers, as well as its own traditional, older consumers, operating a stock- and capital-light model that leverages third party sellers and Boohoo’s infrastructure. Next is one of the UK’s largest online retailers, with 31 to 50 million monthly visitors; it operates a hybrid model, selling its own inventory alongside third-party brands, and has a reputation for strong logistics and customer service. John Lewis also leverages its tried-and-trusted reputation as an upscale British department store retailer, and is increasingly integrating partner brands into its online offering. Amazon continues to dominate in the marketplace space, offering everything from cheap basics to luxury items – but it lacks curation and brand-storytelling.
However, Jordan is confident that the business is significantly differentiated for success. “At Rackhams, our marketplace-first approach is not a side project — it is the business,” he explained. “Because of that, we put equal weight on the experience for both our customers and our partners. Unlike bolt-on marketplaces, which rarely command the time and resources needed to deliver real pre- and post-sales support, we are built from the ground up to make that support central. That’s why we can promise an exceptional experience at every stage.”
Customer-focused experience
As part of that differentiation, Rackhams is curating a personalised, customer-focused experience for buyers, offering them access to a wide range of brands while still retaining unified checkout, communications and support for every order – plus free delivery on every order. Its ethos is built around forging strong and transparent relationships with third-party sellers – it stresses that there are no hidden fees or onboarding charges – which it believes will translate into a better experience for buyers.
Jordan is also leaning heavily into his own experience of successfully scaling digital brands. In 1996, he founded online gaming and technology specialist Box in 1996; by 2021 he’d scaled it to a £100 million-turnover business, which he sold to Warrington-based Tactus Group in 2022. “Having previously built an online retail business to more than £100 million in annual turnover, I wanted to take those lessons in scaling and apply them to a new kind of department store,” he said.
“Marketplace doesn’t have to feel piecemeal,” added Spencer. “We’ve created a fresh company around a simple idea: curated products, fair partnerships and effortless service – all online. With clear standards for sellers and free delivery on every order, Rackhams is designed for convenient, confidence-inspiring shopping.”
As Rackhams returns to retail, it’s not just banking on nostalgia – it’s betting on a smarter, sleeker future. With a marketplace-first model, curated brand mix, and customer-friendly policies like free delivery and unified support, the company aims to carve out a distinct space in a crowded field. Whether it can recapture the magic of its high street heyday in a digital format remains to be seen – but it’s certainly making a confident start.
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