In a noteworthy strategic shift, Sosandar, a women’s fashion retailer, has revised its sales forecast downwards by £5 million for the year.
- This move comes as Sosandar focuses on reducing clothing discounts to maintain profit margins despite facing a pre-tax loss of £0.6 million in recent months.
- The company’s revenue dropped to £16.2 million from £22.2 million, primarily due to decreased promotional activities outside major sale events.
- Sosandar remains optimistic, maintaining its pre-tax profit expectations while planning medium-term profit goals of £10 million.
- The retailer’s recent launch of physical stores marks a significant step toward becoming a multi-channel retailer, showing robust trading results.
Sosandar, a pioneering online womenswear retailer, has announced a revision of its annual sales forecast, reducing the estimate by £5 million. The decision stems from a strategic pivot away from heavy reliance on clothing discounts—a move aimed at sustaining profit margins amidst challenging financial landscapes. The company reported a pre-tax loss of £0.6 million for the six months ending 30 September, reflecting an improvement from the previous year’s loss of £1.3 million. Noteworthy is the decline in revenue, which stood at £16.2 million, compared to £22.2 million last year. This reduction is largely attributed to Sosandar’s departure from price promotional activities outside significant sale periods.
Sosandar’s leadership underlined their confidence in achieving their anticipated pre-tax profit projections despite the scaled-back revenue forecasts. The company has readjusted its full-year revenue forecast to £40 million from an earlier market expectation of £45.6 million. Their medium-term goal remains ambitious, aiming for a pre-tax profit of at least £10 million.
Further enhancing its market strategy, Sosandar has taken a bold step by launching three new physical retail stores. These outlets have reportedly witnessed strong trading results and a noticeable increase in website traffic in areas surrounding the new stores. Co-CEOs Ali Hall and Julie Lavington shared their enthusiasm for this development, stating, “The opening of our first three own stores marks a key point in the company’s development, as we move towards becoming a true multi-channel retailer.”
The approach seems to have paid off, with significant footfall and conversion rates observed in the new store locations. This multi-channel strategy not only broadens Sosandar’s market reach but also enhances brand visibility in competitive sectors. As October unfolds, the company has experienced promising trading activity, with revenues already surpassing those of the previous year, coupled with strong gross margins. This optimistic trend positions Sosandar favorably as it approaches the lucrative golden quarter of the retail calendar.
Sosandar’s strategic shift towards reducing discounts and expanding into physical retail demonstrates its commitment to sustainable growth and profitability.
