THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Weather affects Alexon Group plc

The womenswear clothing retailer said today that the recent extreme weather conditions in the UK is impacting sales performance during an important trading period for the Group.

CITY & CORPORATE

Weather affects Alexon Group plc

The womenswear clothing retailer said today that the recent extreme weather conditions in the UK is impacting sales performance during an important trading period for the Group.

Like-for-like sales for the three weeks from 23 November 2011 to 18 December 2010 are down 19.9% bringing the year to date like-for-like sales decline to 4.7%.

The Board expects this to impact profit expectations for the year ending 29 January 2011 by up to £1.5m. The Group has informed the Bank of the current trading situation. Whilst net borrowings remain comfortably within the Group's current facilities, the Group has commenced a dialogue in respect of one possible consequential technical EBITDAR covenant infringement. The Bank's response has been constructive and supportive.
 
The Group's customer base for its largest brands is predominantly an older demographic and as such, severe weather such as the recent snow and freezing temperatures has a disproportionate effect on sales. Furthermore, given their regional distribution model and the particularly severe weather in certain parts of the UK, a number of stores have been forced to close for several days.  In each of the last three weeks, between 40 and 60 of the Group's outlets have been closed.
 
Whilst the impact of the severe weather is disappointing, the Group continues to make good progress with the strategic initiatives, including store refurbishments, the streamlining of its logistics function and the replacement of its legacy systems. In particular, the Group is successfully building its multi-channel capabilities, through further developing its online and mail order partnerships .Looking ahead, this strategy will help mitigate the impact poor weather conditions has on our business.

Online trading during the period, for example, has hit record highs for us up 129% for the three weeks to 19 December 2010. Accordingly we remain confident in the medium and long term prospects for the business.

The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in London February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can maximize profits, market share and loyalty through cost effective, seamless, integrated multichannel strategies.
If you would like to attend as either a delegate or Networking Partner, go to www.retailbulletinconferences.com/multichannel2011

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process