French Connection struggles to close worst-performing UK stores
Monday 16 September 2013
The under-pressure fashion retailer French Connection says it is struggling to close its worst performing UK stores due to tough negotiations with landlords.
Only four stores, out of 15 potential sites, were closed in the six months to the end of July with another three in the pipeline.
The difficulties come as the company saw sales in the period fall more than 6 per cent to £89.9 million, although pre-tax losses improved marginally from £6.3 million to £6.1 million.
French Connection has struggled in recent years, issuing three profit warnings in the past two years; however, bosses hope a new management team will help turn around its fortunes.
The retail division saw revenues fall - the sales period became shorter, in the hope that more shoppers would pay full price. Retail analyst Nick Bubb disagreed: "When your prices are as high as French Connection's, it is hard to get customers to pay full price."
The UK and Europe market, which accounts for 70 per cent of the business, suffered hardest.Wholesale sales fell to £18.1 million from £16.3 million and retail sales dropped to £46.5 million from £49 million; in the UK the company said trading conditions remain "particularly volatile".
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 The day I starred in Only Fools and Horses
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...