New Look slashes prices as it battles sliding sales amid high street crisis
New Look has slashed costs in a bid to fight plummeting gross sales, months after coming into an organization voluntary association to remain afloat amid the worsening excessive avenue disaster.
The retailer stated 80 per cent of its merchandise might be bought for £20 or much less, in a “return to value-led quick vogue”, after reporting an 11.four per cent drop in gross sales for the yr to 24 March.
New Look criticised for imposing ‘fats tax’ on plus-size clothes
This included an 11.7 per cent drop in UK gross sales, and a 19.2 per cent decline in its personal web site gross sales. Nevertheless, third social gathering e-commerce gross sales, by way of shops reminiscent of Asos, grew 15.5 per cent.
The group reported a 7.three per cent fall in income, to £1.35bn, and posted an working lack of £74.3m.
In March, New Look’s collectors accepted a CVA to cut back rents on its retailer community, which it stated would result in financial savings of £40m, and shut 60 branches throughout the UK, placing virtually 1,000 jobs in danger.
“Final yr was undoubtedly very troublesome for New Look, with a well-documented mixture of exterior and self-inflicted points impacting our efficiency,” stated Alistair McGeorge, govt chairman of the retailer.
“Since November, we now have centered on making the mandatory modifications to get the corporate again on observe and reconnect with our clients. Our turnaround plan is now nicely underway, and we now have already made substantial operational enhancements to assist stabilise the enterprise, cut back our mounted value base and put us in a greater place to drive future full worth gross sales.
“We’ve got began the brand new monetary yr with a a lot cleaner inventory place and at the moment are seeing inexperienced shoots emerge.”
Mr McGeorge added: “We nonetheless have extra work to do to revive long-term profitability, however I’m assured we at the moment are higher positioned to attain this than we had been once I returned to the enterprise over six months in the past.
“Buying and selling circumstances will stay powerful within the yr forward, however additional operational efficiencies and a resolute give attention to our core strengths and heartland buyer will assist to make sure we stay heading in the right direction.”
The UK’s excessive avenue retailers have been engulfed in a battle to remain afloat for the reason that starting of the yr, with plenty of family names collapsing, together with Toys R Us and Maplin.
Up to now week, Home of Fraser has introduced plans to close greater than half of its UK shops, and low cost chain Poundworld has fallen into administration.
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