New Look has narrowed its losses, showing resilience amidst declining sales.
- The company faced an 8.9% sales decline, attributed to store closures and challenging trading conditions.
- Pre-tax losses decreased significantly from £87.8m to £21.7m.
- Emphasis on purchasing versatile stock helped protect margins despite unpredictable weather.
- Investments focus on trials in store renovations, loyalty programmes, and technology to enhance their omnichannel model.
Despite experiencing a notable 8.9% drop in sales, New Look has demonstrated resilience by significantly narrowing its pre-tax losses from £87.8m to £21.7m for the year ending 30 March. This achievement reflects strategic adjustments in response to the closure of physical stores and persistently tough trading conditions.
Sales figures have shown a decline, with total revenue reaching £769.2m. The primary factors contributing to this decrease include store closures, which led to an 11.5% drop in retail revenue to £555.1m. Meanwhile, online sales remained flat at £217.5m, and revenue from third-party platforms fell by 7.6% to £44.7m.
New Look’s approach to mitigating losses involved purchasing a higher proportion of stock with broad appeal and longevity. This strategy was integral in maintaining margins, particularly after unexpected weather patterns during the spring and summer months.
Acknowledging ongoing economic challenges, the retailer expects some relief from inflationary pressures but is mindful of the impact of rising national living and minimum wages on their cost base. To navigate these pressures, New Look is committed to understanding customer spending capacity and investing in initiatives to protect entry price points and drive volume growth through its omnichannel strategy.
The company plans to invest in several trial projects over the next year, including store renovations, loyalty schemes, and data and AI tools. These initiatives aim to identify the most valuable investments that will bolster the omnichannel model and provide enhanced customer experiences.
New Look’s strategic initiatives indicate a forward-thinking approach to overcoming current retail challenges.
