Although this positive news has come at a time with many retailers reporting a growth in sales, at the same time Acardia has also revealed that profits slumped 38% to £133m in the 12 months leading up to September 2011, and as a result of this is planning to close around 10% of its bricks stores in the coming years.
Arcadia is one of the largest private employers in the UK, with over 44,000 staff working in over 2,500 stores based around the UK. The group has 480 leases coming up for renewal in the next three years and Sir Phillip Green, the owner of the famous Arcadia Group, has stated that he expects to close around 260 stores over the next three years due to the recent slump in profits.
Sir Phillip blamed the decline in profits on the constantly challenging economic climate, as well as the very unpredictable weather in 2011, which has dented the sales of winter clothing in recent months in it’s popular fashion stores. The nationwide decline in high street sales could also be having an effect on the fashion giants, which would explain the growth in online sales, with the majority of consumers choosing to shop in the comfort of their own home online.
These findings conform to the trends which have formed in recent years, which show high street sales slumping whilst online stores enjoy a significant growth in sales, especially in the run up to the festive season. To take advantage of the increasing level on sales on the web, contact Visualsoft today to see how we could help you get the most out of your online store.