Fashion retailer River Island is understood to have drafted in consultants as it eyes “cost reduction and profit improvement” ahead of the upcoming tax increases in April.
River Island has reportedly drafted in AlixPartners to work on a “cost reduction and profit improvement exercise”, as reported by Sky News.
While the fashion chain is expected to be eyeing a tightened grip on its cost base, it is not believed to be looking at a formal restructuring that would lead to closures of its stores.
The fashion giant, previously known as Lewis and Chelsea Girl, currently trades from more than 250 stores as well as online.
River Island and AlixPartners did not provide a comment.
This comes after River Island swung to a loss for the 52 weeks to December 30, 2023, in its most recent trading update. Revenue was down 15.1% for the period while EBITDA fell 146%.
At the time River Island noted competition “in the digital space” and said that customers were seeking “more diverse, convenient and speedier” shopping experience sthan ever before.
It pledged to be “positive about the outlook” despite a “challenging” trading environment.
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