In recent months popular fashion chains such as Abercrombie and Fitch have posted steadily weakening sales results, harking back to the recession when many retailers failed to meet sales targets. Fortunately, though, other brands have managed to achieve strong sales, indicating that this issue lies not with the industry but with certain brands failing to meet the demands of their target consumer market.
Supergroup, for example, has managed to rebound in stunning form from the issues which plagued it throughout the economic downturn. This week, it announced a strong jump in group sales for the first quarter driven primarily by its womenswear offering.
The Superdry owner reported a 25.7 per cent increase in total sales in the 13 weeks to the 28th July, netting Supergroup a total of £75 million for the quarter. This compares extremely favourably with the previous quarter, in which growth amounted to only 15.3 per cent.
Retail sales also managed to rise encouragingly by 17.6 per cent, with stores which have been trading for at least one year seeing sales climb by 8.5 per cent. Internet sales remained strong, yet this factor has not distracted the group from its determination to build its overseas commercial property portfolio.
Chief executive Julian Dunkerton revealed the group’s determination to keep up the programme of aggressive expansion which it is currently using to break into emerging markets.
He said; “This performance coupled with our continuing international expansion gives me confidence in our ability to continue to meet expectations.
“There are plans for physical stores in China.
“We’re waiting until we have the full learnings from the website but that is the global prize.”
At present, Supergroup owns and operates a store in Hong Kong but is yet to expand to other areas within the Chinese market. In the meantime, it plans to launch a website geared exclusively towards Chinese consumers before the end of the year in order to capitalise on its following in the Asian country.
However, the group is also examining its options with regards to the Latin America and Russian markets, meaning that the Chinese expansion could take a back seat if favourable alternatives are found.
The Superdry brand has an extensive commercial property portfolio, with a mixture of franchised and licensed stores located in more than 50 countries throughout the world. Additionally, a chain of websites caters to over 100 countries globally, while recent distribution agreements are expected to yield strong results in both Malaysia and Singapore.
Yet it is not only international expansion which has allowed for strong sales, as the group recently acquired a unit at Gatwick North. This airport location has the advantage of a high footfall and varying consumer tide, as fashion retail consultant Anusha Coutigane points out.
She says; “This addition sees Superdry capitalising on the trans-nationality of the brand, playing into the trend of upmarket labels with unique aesthetics positioning themselves at airports to take advantage of fashion tourism.”
Do you think the large-scale expansion is the primary reason for Supergroup’s positive results, or are consumers turning to the brand as competitors fail to identify what they are looking for in their fashion choices?
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