New Look insists it won’t be the next retail casualty
Ailing fast-fashion chain New Look won’t fall victim to the onslaught of collapsing retailers, its boss said on Tuesday as he tries to turn around its fortunes.
Executive chairman Alistair McGeorge, who was parachuted back into New Look in October to revive it, said: “It may well be the case [on the High Street] but it won’t be New Look. In the end, the customers will decide. There’s nothing in the data to suggest we’ve lost our customers. It’s our brand and the way we run the business that will save us in the end.”
The debt-laden retailer reduced its losses to £74.3 million for the year to March 2018 from £97.6 million the year before. However, revenues slipped 7.3% to £1.3 billion and same-store sales in Britain plunged by 11.7%. Its own website sales also deteriorated, by 19.2%.
To turn it around, top brass have worked on getting rid of old stock and selling more wares at full price, albeit New Look now wants 80% of its clothes to sell for £20 or less. It is also ploughing ahead with a company voluntary arrangement — alongside struggling House of Fraser, Mothercare and Carpetright — to close 60 unprofitable stores out of 593 in Britain and slash its rent bill.
Its debts went up by £120 million to almost £1.3 billion.
“We’re not focused on [debt] right now. We want to get financial stability. We’re not there yet but we’re making good progress,” McGeorge added.
