Retailer Spotlight - Troubling Times for Womenswear

Posted At: 16 March 2017 14:17 PM
Related Categories: Retail, Retailers, Womenswear Retailer

Style Group Brands, the parent company of labels such as Jacques Vert, Windsmoor, Eastex and Precis, has launched ambitious plans to get the business back on track. The review, led by new chief executive Shaun Wills, includes the appointment of KPMG to explore a sale or restructuring options for the group. The UK’s largest womenswear concession operator is the latest fashion retailer to be affected by toughening trading conditions and increasing competition on the high street. Just this week, shareholders at French Connection have called for a break-up of the retailer as they record a full-year loss for the fifth consecutive year.

Style Group Brands was formed via the merger of Jacques Vert and Irisa Group‎, and trades in department stores including Debenhams, House of Fraser and John Lewis's online operation. It currently operates from more than 1,850 outlets in 470 separate locations in the UK, Europe and Canada.

The potential sale or restructure could lead to a reduction in‎ the number of outlets, possibly under a new owner. It follows a wave of auctions of women's fashion brands. Last December, Aurora Fashion Group announced it was putting its brands Oasis, Warehouse and Coast up for sale. Elsewhere, Jaeger has appointed advisers to handle an auction and shareholders in LK Bennett are expected to follow suit in the near future.

While the Style Group Brands saw sales increase by 4% on a like-for-like basis for the second half ended 31 January, the group is very much at the starting point of its turnaround strategy.. Shaun Wills commented, “The real test is this spring/summer, which is where all our work around more commercial product will start to be seen,”
Wills, who took over as CEO from Tim Davies in April, suggested that there is some reorganisation going on in stores in terms of store management staff however no other details have been shared.

Clothing retailers are facing intense pressure from the impact of inflation, which is set to lead to substantial price hikes. Other costs linked to business rates, the national living wage and apprenticeship levy also pose a real challenge for the sector.

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Retailer Spotlight – Joules

Posted At: 09 December 2015 00:25 AM
Related Categories: Retailers, Womenswear Retailer

Time for celebration at Joules

Lifestyle retailer Joules has had an extremely successful year, and in FSP eyes is a very fitting finish to 2015’s Retailer Spotlight series.

Having posted record full year revenues in 2014 Joules went on to report a successful Easter trading period leading to further increases in full year 2015 that saw total revenue rise 22% to £117 million.

This growth in total revenue has come as a result of further growth in the US and German markets, although some 91% of Joules’ turnover is generated in the UK. In June, Joules received an additional credit facility that will allow it to fund further growth in Europe and North America. 

On top of making senior promotions to drive this growth, Joules continued opening stores in the UK and celebrated the opening of its 100th outlet in Dublin. This opening marked the first full-price store for Joules in Ireland. Shops in Harrogate and Sheffield’s Meadowhall followed, and Joules has plans to open a further 12 shops in the UK and Ireland next year across various locations, including market towns and shopping centres, maximising its exposure to target customers.

Joules has definitely been one of the success stories of 2015 and looks set to continue its march throughout the world next year. It certainly has the strength in its management team and financial resources to pursue the growth plans laid out and the multichannel capabilities to grab an ever increasing slice of the online market.
 

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Retail Spotlight – Jane Norman goes into administration

Posted At: 27 June 2011 15:28 PM
Related Categories: Administrations, Jane Norman, Retail, Store Closures, Womenswear Retailer

Following the recent news that the womenswear retailer Jane Norman has collapsed into administration; we reviewed and updated the retailer record on SnapShop.  Below is a summary of the retailer profile and highlights of the administration:

On 27th June 2011- Jane Norman collapses into administration putting 1,600 jobs at risk. Retailer closed its 90 UK stores over the weekend after it failed to find a buyer for the business. Zolfo Cooper have been appointed as administrators. At the time of writing, website had not been updated with information on how the company intends to handle online orders

On 24th June 2011 - Edinburgh Woollen Mill has entered the race to buy womenswear chain Jane Norman

On 23rd June 2011 - Debenhams bid to acquire the stock and brand Jane Norman. Debenhams wants to keep the profitable Jane Norman concessions trading in its department stores, but has no interest in its 91 high-street stores

On 20th June 2011 - Private equity firms Sun Capital Partners and Better Capital entered rescue talks

On 17th June 2011 - The management team behind Aurora Fashions emerged as an interested party to acquire beleaguered Jane Norman

On 8th June – Jane Norman managing director Ian Findlay stepped down

On 7th June 2011 - Jane Norman was put up for sale

On 15th April 2011 – Jane Norman kicked off a radical overhaul of its product and image to target a younger, trend-savvy shopper

On 1st March 2011 -Jane Norman veteran Saj Shah takes early retirement

On 6th April 2010 - Jane Norman approached Aurora non-executive president Stewart Binnie to become its new chairman

On 10th Jan 2010 - Jane Norman’s lenders are to take over the business and restructure its debts of almost £136m

On 1st May 2010 – The company drafted in accountancy company PricewaterhouseCoopers (PwC) to assess the "operational efficiencies" of the business, three months after one of its major shareholders, Baugur, went into administration

On 27th March 2009 - Sandy Goldsborough, the trading director at Jane Norman, left the womenswear retailer after just six months in the role

Financial Health for Year Ended 27th March 2010

Total sales for the period ended 27 March 2010 were £144.1m (2009 £148.8m). The gross profit margin was 56% (2009: 56%), resulting in gross profit for the period of £80.0m, a decrease of £3.0m on the prior period. Administrative costs decreased from £72.0m to £70.0m mainly as a result of the reduction in costs for newly-opened stores, and reduction in head office costs. Administrative costs amounted to 48% of sales (2009: 48%).

As a result, operating profit for the period under review was £10.6m (2009 £11.1m). EBITDA was £15.4m (2009 £16.2m) and EBITDA margin was 11% (2009: 11%).

Want to read more? Subscribe to SnapShop to download Jane Norman’s latest accounts or register online to receive information packed newsletter for 3 months.

Retailer Profile – Jane Norman
Founded in 1952, Jane Norman is a womenswear retailer with over 170 stores/concessions in the UK and has a staff of over 1,600.  It is positioned in the middle sector of the clothing/footwear market, with focus on young fashion.  The Jane Norman target customer is typically aged between 16 and 25 and the company is most strongly associated with dressy fashion (weekend, pub and clubwear).

It was a private limited company following a management buyout backed by Baugur in 2005. Jane Norman did not appear to have been affected by the administration of Baugur.

In May 2009 Jane Norman drafted in accountancy company PricewaterhouseCoopers (PwC) to assess the "operational efficiencies" of the business.  It was announced in June 2011 that Jane Norman had been put up for sale.

In June 2011 it was announced that Jane Norman had entered administration, and 90 stores had been closed. Click here to view retailer’s profile on SnapShop

According to a recent report by Deloitte, the first quarter of 2011 has witnessed the highest number of retail administrations in two years with nearly 20 administrations recorded on SnapShop in Q1. Do you need to keep up-to-date with these trends and statistics? SnapShop, being an information tool, records just such information:  retailers’ financial health, daily updated news, number of stores, head office details on over 2300 retailers and SnapShop News Alerts will keep you up to date with news about retailer administrations.

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