Arcadia to close 250 stores
Arcadia, the retail group owned by billionaire Sir Philip Green, has reported that underlying pre-tax profits fell by more than a third to £133 million in the year ending 27 August. This compares to a profit of £213 million in the previous year.
As a result the company plans to close up to 250 stores during the next three years.
The group which includes high street stores such as BHS, Topshop, Burton, Dorothy Perkins and Wallis, saw total sales fall by 3.4% to £2.6 billion in the year.
Sales at stores open more than a year fell 1.8%. Although Arcadia said that its younger fashion brands such as Miss Selfridge and Top Shop were trading well, like-for-like sales for the wider group were down 4.4% in the first 12 weeks of the new financial year. However online sales rose 27%.
Margins fell 1.8 % as the company opted to absorb rising costs instead of passing them on to its customers.
Sir Philip Green blamed much of the performance on the weather telling Sky News that last year's cold winter and this year's warmer autumn weather had impacted on sales. He said: "On top of everything we haven't had a cold day yet - it's tough to sell with no seasonable help."
Email this article to a friend
You need to be logged in to use this feature.
Please log in here