Competitive market leads clothing retailer to new pastures
22 Mar '06
3 min read
Verdict reported that retail sales of this week showed the UK retail sales volumes rose by 0.5 per cent in February after a very weak January for which the decline in sales volumes was revised down further to 1.6 per cent.
Boots is planning to invest £250m in store modernisation and supply chain improvements as part of a general effort to revamp the Boots brand. Over 2,000 jobs will be lost through the closure of 17 regional distribution centres over the next three years as supply operations are concentrated at a new £70m facility in Nottingham.
Some 700 smaller Boots stores will benefit from the modernisation programme, which will focus on creating in-store patient consultation areas.
French Connection reported that adjusted pre-tax profit for the year to January 31 more than halved from £33.7m to £12.2m, as revenue fell 7 per cent from £266m to £246m.
Shirt retailer TM Lewin has opened the final round of talks with prospective private equity buyers which could see the business sold for £35m.
Body Shop announced that it has agreed to a £652.3m takeover by L'Oreal.
The clothing market is highly competitive and subject to heavy price deflation which is driving retailers to look for new areas where they can grow their sales. The ease with which accessories can be incorporated into a retailer's offering, combined with fast growth in the category, make this a very attractive market.
The ethnic-inspired womenswear retailer made news recently when a consortium of retailers and business investors led by Luke Johnson of Risk Capital Partners acquired a 50% stake in East and its wholesale clothing arm, Mint.
marketing@alchempro.com
