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Aussie retailer Specialty Fashion to shut 120 outlets
23 Feb '12
2 min read
Specialty Fashion Group (SFG), an Australia-based women's apparel retailer, will close around 120 of its outlets within the next three years, as it is enduring the most adverse retail atmosphere so far.
According to its latest half-yearly review statement, the group which runs chains like Millers, Katies and La Senza, witnessed a 64 percent slump in its profits during first half of the current fiscal that began on July 1, 2011.
The company does not expect the economic conditions to improve much during the second half of the current fiscal, as there are no indications of the consumer demand perking up in short-term.
The retailer has already pulled down shutters at seven of its outlets in 2012 and is likely to shut another 15 outlets by June.
SFG Chief Executive Gary Perlstein said the company will remain steadfast to its policy of revamping the business with innovation, discipline and expansion of sales channel, thereby sustaining the group's financial strength in short-term and preparing for long-term growth.
The group intends to rationalize its store portfolio and cut its capital expenditure, as it is diverting its focus to several different sales channels, including enhancing its online sales, the statement read.
However, the store closures are not likely to result in any additional unemployment, and only natural attrition, which usually happens in the retail sector, will occur.
Specialty Fashion intends to shift the staff of the outlets being closed to new stores that it proposes to open at strategically key locations, as a part of its plan to open 100 La Senza outlets over the next three years.
According to its latest half-yearly review statement, the group which runs chains like Millers, Katies and La Senza, witnessed a 64 percent slump in its profits during first half of the current fiscal that began on July 1, 2011.
The company does not expect the economic conditions to improve much during the second half of the current fiscal, as there are no indications of the consumer demand perking up in short-term.
The retailer has already pulled down shutters at seven of its outlets in 2012 and is likely to shut another 15 outlets by June.
SFG Chief Executive Gary Perlstein said the company will remain steadfast to its policy of revamping the business with innovation, discipline and expansion of sales channel, thereby sustaining the group's financial strength in short-term and preparing for long-term growth.
The group intends to rationalize its store portfolio and cut its capital expenditure, as it is diverting its focus to several different sales channels, including enhancing its online sales, the statement read.
However, the store closures are not likely to result in any additional unemployment, and only natural attrition, which usually happens in the retail sector, will occur.
Specialty Fashion intends to shift the staff of the outlets being closed to new stores that it proposes to open at strategically key locations, as a part of its plan to open 100 La Senza outlets over the next three years.
Fibre2fashion News Desk - India
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