New Look has slashed costs in a bid to fight plummeting gross sales, months after getting into an organization voluntary association to remain afloat amid the worsening excessive avenue disaster.
The retailer mentioned 80 per cent of its merchandise might be offered for £20 or much less, in a “return to value-led quick trend”, after reporting an 11.four per cent drop in gross sales for the 12 months 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. Nonetheless, third get together e-commerce gross sales, by way of retailers comparable to 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 permitted a CVA to cut back rents on its retailer community, which it mentioned would result in financial savings of £40m, and shut 60 branches throughout the UK, placing nearly 1,000 jobs in danger.
“Final 12 months was undoubtedly very troublesome for New Look, with a well-documented mixture of exterior and self-inflicted points impacting our efficiency,” mentioned Alistair McGeorge, govt chairman of the retailer.
“Since November, we now have targeted 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 fastened value base and put us in a greater place to drive future full worth gross sales.
“We’ve got began the brand new monetary 12 months 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 realize this than we had been after I returned to the enterprise over six months in the past.
“Buying and selling situations will stay robust within the 12 months forward, however additional operational efficiencies and a resolute deal with 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 wrestle to remain afloat for the reason that starting of the 12 months, with a lot 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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