Sosandar is strategically entering the physical retail space this autumn with its first store openings.
- The brand reported a 9% revenue increase to £46.3m, yet faced a £300,000 loss before tax for the year ending 31 March 2024.
- A shift in focus towards profitability over promotional sales resulted in a profit of £1m in the latter half of the fiscal year.
- Physical stores in Marlow and Chelmsford are set to open in September as part of Sosandar’s expansion plan.
- Trading with established marketplaces remains strong, enhancing confidence in international growth.
As Sosandar prepares to open its first physical stores, it marks a significant phase in the brand’s expansion strategy. The company has chosen Marlow and Chelmsford as its initial store locations, eyeing areas where customers are already engaged and foot traffic is substantial. Co-CEO Ali Hall expressed that targeting upmarket locations where premium womenswear retailers thrive supports their growth ambitions.
The year ending 31 March 2024 saw Sosandar achieve a 9% revenue rise to £46.3m, a clear indicator of its increasing popularity through sales of partywear, dresses, tailoring, knitwear, and denim. However, they reported a £300,000 loss before tax, contrasting with the prior year’s profit of £1.6m. The fiscal period was described as a ‘period of two halves’ by CFO Steve Dilks. The shift away from aggressive price promotions to focus on margin improvements led to a £1m profit in the second half of the year, underscoring a strategic pivot towards sustainability in earnings.
For the upcoming financial year ending March 2025, Sosandar projects revenue to grow to £54.6m with a profit before tax of £1m, aligning with market expectations. Sosandar’s sharper focus on margin improvements is highlighted by a 670-basis point increase in gross margin for the first quarter of FY25, attributed largely to an 80% cut in promotional activities on its website. This tactic has paid off by stabilising demand while enhancing profitability.
Store openings in Marlow and Chelmsford represent a ‘massive opportunity’, offering benefits such as reduced stock costs through higher order quantities, as stated by Dilks. With ambitions to expand to 50 stores in five years, Sosandar is setting the groundwork for a broader physical retail presence that complements its online operations.
The brand continues to perform strongly with third-party marketplaces like Next, Marks & Spencer, and Very, and is optimistic about its international prospects. Notably, the brand experienced a successful entry into The Iconic marketplace in Australia without prior marketing efforts, proving the appeal of its offerings in new territories.
Sosandar’s strategic expansion into physical retail and focus on profitability positions it for growth and success in the coming years.
