With global plus-size fashion retailer City Chic’s sales impacted by reduced promotional activities, a strategic review has been launched to find ways to improve performance.
According to a trading update based on unaudited accounts for the 45 weeks to 14 May, group sales fell 15.2 per cent to $262.2M. By region, Australia and New Zealand sales fell 10.8 per cent to $122.1M while its business in the Americas is down 21.6 per cent to $106.2M.
European sales fell eight per cent to $33.9M with UK operating conditions deemed “exceptionally challenging” with heavy discounting needed to increase sales. A strategic review by the business is expected to lead to reduced inventory levels through the upcoming financial year; however the company expects margins will remain soft.
Phil Ryan, CEO and MD at City Chic, said “strong” promotional activity across markets was needed as operating conditions remained challenging.
