Sosandar, a prominent women’s fashion retailer, has adjusted its sales forecast due to strategic changes.
- The company’s recent financial report shows a reduction in pre-tax losses, indicating fiscal improvement.
- Revenue has decreased following a shift away from significant discount promotions.
- Sosandar has successfully launched three new physical stores, boosting online traffic in those regions.
- The retailer remains optimistic, focusing on a multi-channel retail strategy and profitability enhancement.
Sosandar, a well-known women’s fashion retailer, has recently revised its sales outlook, cutting the forecast for the year by £5m. This adjustment comes as the company moves away from broad clothing discounts in an effort to maintain steady profits. While this strategic shift aims to enhance profitability, it has led to a decrease in revenue, which was reported at £16.2m for the first half of the financial year, down from £22.2m the previous year.
Despite the reduction in revenue, Sosandar has managed to decrease its pre-tax losses from £1.3m to £0.6m in the six months leading up to 30 September. This improvement suggests that the company’s strategic choices are beginning to positively impact its financial standing. The shift from aggressive discounting appears to be a step towards sustainable fiscal management, although it necessitates adjustments in revenue expectations, currently revised to £40m from an anticipated £45.6m.
In a bid to diversify and augment their market presence, Sosandar has launched three physical retail stores within the last half-year. These stores not only signify a step towards becoming a true multi-channel retailer but have also successfully increased foot traffic and online engagement in their respective locales. The company has reported strong trading performances at these new locations, underlining the effectiveness of this expansion strategy.
Co-Chief Executive Officers Ali Hall and Julie Lavington emphasised the significance of these openings as pivotal in the company’s evolution. They noted, “The opening of our first three own stores marks a key point in the company’s development, as we move towards becoming a true multi-channel retailer.” They further expressed confidence in their growth strategy, particularly in enhancing profit margins, which has already shown promising results in their latest fiscal performance.
As the company progresses into October, they have witnessed robust trading activities, with revenues outmatching those of the previous year. Sosandar continues to focus on maintaining a strong gross margin, positioning itself strategically as it approaches the busy golden quarter.
Sosandar’s strategic shift from discounts to a focus on profitability appears to be delivering positive outcomes, with future prospects remaining optimistic.
